“We're at the tip of the iceberg and it's incredible to me that the Brooklyn office market hasn't taken off further,” observed Tucker Reed, president, Downtown Brooklyn Partnership, “It's been said that the REAP incentive [a tax break that goes to companies who locate in Brooklyn] equates to a $15-per-square-foot savings for companies, plus the Brooklyn Tech Triangle has attracted people to the area and the creative class wants to be in Brooklyn because many of the CEOs of young technology companies—and the like—live here and they don't want to commute to Manhattan.”

In Gowanus, LIVWRK—in conjunction with Kushner Cos. and SL Green Realty Corp.—is working to address the needs of those corporate leaders and their employees with Dumbo Heights. The 140,000-square-foot complex will have retail offerings at it base, including restaurant options.

Of the amenities LIVWRK hopes to offer, CEO Asher Abehsera explained, “We're designing and programing not around the tenant but the employees of the tenant. They want to ride their bikes to work, eat in Brooklyn, etc., and we're creating a canvas to promote the lifestyle they're looking for.”

Demand, and what's driving it, is clear to Jack Cayre, principal Midtown Equities. The firm is behind the Empire Stores project on the Dumbo waterfront, which is slated to feature about 380,000 square feet of office space, about 80,000 square feet of retail and restaurant offerings and 7,000 square feet of rooftop space.

“At Empire Stores, we have floor plates of over 100,000 on one floor—for technology tenants, who are driving most of the demand, that's really special. TAMI tenants who were looking at Midtown South would have paid rent of $80 to $90 per square foot for this type of space and their view would be of another building. Here, the rent is $65 per square foot and there's the REAP incentive plus a panoramic view of the city and its right in the middle of Brooklyn Bridge Park.”

Adds Tim Quinlan, principal and founder, Quinlan Development Group, “Wechose office because of the supply/demand scenario, vacancies are at 2 to 3% here; there's strong demand. We saw a building that was in great shape and it was an efficient conversion because residential would be three to four years whereas this is 24 months. We kept our basis low and we didn't have to put much in building.”

Going forward, even more conventional sectors likely will migrate to the borough for their office space, asserted Reed, “While the creative sector is driving growth, it doesn't need to be limited to those types of tenants. Once we start to see ground up commercial buildings being built, we may see healthcare firms and other sectors willing to consider space here.”