Search
 

Retail: All Roads Lead to Brooklyn

Major chains continue opening or expanding in the city's most populous borough even if demand softens temporarily.

By Paul Bubny | Updated on July 14, 2008

National and regional retailers continue opening up shop in Brooklyn despite the current economic downturn, according to a Q2 retail research report by Marcus & Millichap. The report notes that brands such as Morton’s Steakhouse, Urban Outfitters, Circuit City and Trader Joe’s have leased space in the borough, and the first Ikea store in New York City just opened on the Brooklyn waterfront, anchoring the Triangle at the Junction development.

“Despite a challenging climate in property financing, taxpayer assets will remain highly coveted by investors seeking to trade out of more management-intensive properties, such as apartments,” says J.D. Parker, regional manager Marcus & Millichap’s Brooklyn office, in a prepared release.

The report notes that 750,000 sf of retail space is expected to be delivered during 2008, compared with 192,000 sf last year. The retail vacancy rate is expected to end the year at 4.7% due to a temporary softening of demand, while asking rents climb an average of 9%. For national tenants leasing space for the first time in Brooklyn locations, new rents are expected to rise at a much greater rate. According to the report, the median price in the multi-tenant sector has risen 11% to $267 per sf during the most recent 12-month span; that compares with a 4% gain in the previous year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.