With the arrival of new residential development in Brooklyn, nearby retail has also taken off, according to a new report.
Average asking rents for ground-floor space in at least seven retail corridors in the borough increased year-over-year, according to a report released by the Real Estate Board of New York. A stretch of Franklin Street in Greenpoint, between Meserole Avenue and Commercial Street, saw the greatest jump in average asking rents from the winter of 2016 to the same time in 2017, the report shows. The average asking rent spiked 42 percent from $63 per square foot to $89 per square foot. Seventh Avenue in Park Slope — between Union and Ninth streets — followed with a 35 percent year-over-year increase in asking rent from $96 to $129 per square foot.
The REBNY report credits new residential construction with boosting retail in certain areas.
“The retail real estate market in Brooklyn continues to demonstrate strength driven by rising residential development and new retail supply coming to market,” John Banks, REBNY’s president, said in a statement. “While national brick-and-mortar retail has taken a hit this year due to shifting shopping trends, Brooklyn has retained retailer interest for transit-oriented locations with growing foot traffic.”
Bedford Avenue in Williamsburg between Grand Street and North 12th Street saw the biggest drop in average asking rents for ground floor retail, falling 18 percent to $296 per square foot. The report notes that a lack of availability in this corridor likely drove down the average asking rents slightly.