David Walentas of Two Trees Management, a real estate development firm, asks the same question. "It's just fantastic down here. The proximity to lower Manhattan, that quintessential view of the Manhattan skyline--plus it's just a fun place to be." What makes it even more fun is the financial incentives offered by the city and state to revitalize the area have brought asking rents down to less than $10 per sf. Walentas and his crew have been able to attract retail in unique ways. "We gave many of our retailers a year's free rent, if not more. It adds value to the neighborhood."
Why should businesses consider DUMBO, besides killer financial incentives? "It's a great mixed-use neighborhood, we have buildings with underground parking, high-tech wiring and great infrastructure," says Walentas. Will tenants buy it?
"Restaurants and galleries are starting to pop up, condos are being developed and the creation of this neighborhood is starting to take shape. It's where SoHo was 25 or 30 years ago. If office tenants can see enough going on that they will start considering moving into the area," says Bruce Rothman, managing director at Julien J. Studley
.Although limited public transportation has long been an issue with areas like DUMBO, Walentas insists that the neighborhood "couldn't be more convenient." Rothman adds that other attractions could override such concerns.
"The 15 minute walk to a subway is a drawback. But Walentas's commitment to the area is strong, and he spares little expense with his office and condo conversions, which is helping him successfully convince tenants to overcome this drawback." Rothman points to the Starrett Lehigh Building at 601 West 26th St. as an example--way over on 11th Avenue. "That building is also very far from public transportation but because of its sexy space, its new owners were able to attract tenants in spite of its location."
Apart from building a new office tenancy, Walentas sees DUMBO becoming "a real world-class waterfront district. A little gentrification is inevitable, but we're looking to keep it rough."
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