Brooklyn is no longer the cool office market it once was.
Instead of attracting startups like Vice or WeWork, the borough is inking leases with far less glitzy government agencies such as New York City’s Human Resources Administration.
City agencies are likely attracted to the cheaper rents offered in the outerboros. Brooklyn’s office buildings constructed post-2000 average a price per square foot of $64.76, according to Colliers. That’s a nearly 16 percent discount compared to Lower Manhattan property, a nearly 25 percent discount to Midtown, and a nearly 52 percent discount to Midtown South.
Vacancy is trending slightly lower in Brooklyn. Available office space fell to 21.1 percent in the fourth quarter, down from 22.8 percent from a year ago, according to Colliers.
Here are the five largest leases in Brooklyn in 2023
Metropolitan Transportation Authority | One Pierrepont Plaza | 192,000 square feet
Brookfield Properties signed a nearly 200,000 square feet lease with the MTA at its 19-story One Pierrepont Plaza. MTA already had a 10-year lease for 47,042 square feet, but added additional space in early 2023. The agency moved some of its workers to an office at 180 Livingston Street in Downtown Brooklyn and an office at 333 West 34th Street in Manhattan.
City of New York | 850 Third Avenue | 158,000 square feet
The City of New York provided some major relief to 850 Third Avenue, also known as Liberty Bklyn. The city inked a 158,000 lease with Salmar Properties and Madison Capital’s 1.3 million-square-foot complex next to Industry City, replacing empty space left by Bed Bath & Beyond. The space will be used for 700 employees from the city’s Human Resources department. The workers moved from the agency’s headquarters at Brookfield’s 15 MetroTech Center in Downtown Brooklyn.
City of New York | 88 Third Avenue | 97,000 square feet
The City also nabbed the third largest lease of 2023 in Brooklyn. Once again, the Human Resources department renewed its lease of the first four floors of 88 3rd Avenue in Downtown Brooklyn. The city plans to pay an annual rent of $4.1 million for the first three years and $4.2 million for the following three, and $4.9 million for the last four months.
Boston Consulting Group | 55 Water Street | 67,355 square feet
Boston Consulting Group was the largest corporate lease in Brooklyn in 2023. The company nabbed a 67,355 square foot lease in the Empire Stores building at 55 Water Street in Dumbo. The building was constructed in the 1870s and as a warehouse for a coffee company. It sat vacant from the1960s until around 2013 when it began its conversion to offices.
City of New York | 335 Adams Street | 64,340 square feet
The New York City Department of Education renewed 64,340 square feet at Muss Development’s Downtown Brooklyn tower. The agency extended its lease on the 28th and 29th floors of the 32-story office tower, according to the Commercial Observer. The building is part of a larger complex that includes a 667-room Marriott hotel and a 1,100-car garage.