-
2014 BROOKLYNRETAILREPORT
PREPARED BY THE CPEX RETAIL LEASING TEAM81 WILLOUGHBY STREET,
8TH FLOOR | BROOKLYN, NY | 11201 | 718.935.1800
WWW.CPEXRE.COM
-
CPEX Real Estate Services is pleased to present our annual
Brooklyn Retail Report for 2014, a comprehensive survey of the
primary retail corridors throughout the borough.
The 2014 CPEX Brooklyn Retail Report continues the work started
in 2009 by the CPEX Retail Leasing Team, with as-sistance from our
research and graphics departments. It is a tale of two Brooklyns;
the south didnt experience much in the way of growth or
appreciation, while Northern Brooklyn underwent an explosion in
newly established retail destina-tions and in corridors that saw a
significant increase in pric-ing. In this latest version, we have
identified 43 additional retail corridors in the last five years to
account for the rap-idly expanding retail scene in flourishing
neighborhoods like Greenpoint and Crown Heights. This brings the
total num-ber of significant retail arteries in the borough to an
im-pressive 88. Of those 88, 10 different corridors average over
$100 per square foot for retail rentals, compared to just two that
barely surpassed triple digits five years ago.
Careful attention has been paid to summarize current market
conditions. The pricing for each corridor provided is an es-timate
and a snapshot of the current period, based on data collected from
internal and external sources, including: CPEX completed
transactions, market reports from our in-house re-search studies,
and various data resources (aptsandlofts.com; Brooklyn Tech
Triangle, Economic Impacts of Tech and Cre-ative Sectors, April
2012; Brownstoner.com; Commercial Ob-server; Downtown Brooklyn
Partnership; NYC MTA; New York Daily News; StreetEasy; The Real
Deal; U.S. Census Bureau; and the Wall Street Journal).
Timothy D. King Ryan Condren Kristina Triglia George
DanutManaging Partner Managing Director Associate
[email protected] [email protected] [email protected]
[email protected](718) 687-4210 (718) 687-4212 (718) 687-4206 (718)
687-4220
Considering the dynamics of the New York Retail Market and the
overall economic conditions, these pricing levels are not only
subject to change, but will most likely fluctuate as various market
conditions, supply, demand, and economic indicators change from
quarter to quarter. While the actual pricing levels may change in
the coming months, this report can be an im-portant tool for
leasing comparisons, for calculating percent changes across
neighborhoods and boroughs, and for quan-tifying Net Operating
Income levels in estimating cap rates and performing property
valuations. This report can assist property owners and business
owners with a current and up-to-date synopsis of their
marketplace.
For retail landlords and tenants with specific site analysis
re-quirements, please note that each and every property provides
unique characteristics which affect its potential lease pricing
levels. Characteristics such as location, build-out, neighboring
tenants, available transportation, street conditions, residential
density, traffic, etc., all have an important impact on contract-ed
leasing rates. As the economic market impacts the retail industry,
we at CPEX will continue to monitor such changes and make them
available to our clients. Please call us if you have any questions
regarding this report or if you require fur-ther information
pertaining to your real estate or business.
WWW.CPEXRE.COM
Introduction
The CPEX New York Retail Leasing Team
COURT STREET & JORALEMON STREET
-
WWW.CPEXRE.COM WWW.CPEXRE.COM
#123456789
1011121314151617181920212223242526272829303132333435363738394041424344
Street Range75th St - 86th StUnion St - Prospect AveAtlantic Ave
- 18th StFlatbush Ave - Bergen St12th St - 16th St75th St - 86th
St47th St - 54th St17th St - 23rd StBergen St - 12th St9th St -
Berkeley St44th St - 49th St75th St - 82nd St61st St - Bay Ridge
Pkwy23rd Ave - Stillwell Ave4th Ave - Fort Hamilton Ave18th Ave -
20th AveBay Pkwy - 23rd Ave20th Ave - Bay Pkwy20th Ave - Bay
Pkwy53rd St - 61st StSmith St - 4th AveClinton St - Smith StConey
Island Ave - E. 15th StConey Island Ave - Haring StNorth 8th St -
Metropolitan AveNorth 3rd St - North 8th StBrighton 4th St - Coney
Island AveFlushing Ave - Park StKent Ave - Roebling StMetropolitan
Ave - Johnson AveFlatbush Ave - Ocean AveE. 49th St - E. 53rd
StDeGraw St - President StAvenue J - Cortelyou RdConey Island Ave -
E. 16th StAtlantic Ave - Bergen StBergen St - Baltic StBaltic St -
4th PlMontague St - Atlantic AveBelt Pkwy - Neptune AveGrand St -
North 11th StSchenectady Ave - Utica AveNostrand Ave - Ocean
AveAvenue V - Avenue S
#4546474849505152535455565758596061626364656667686970717273747576777879808182838485868788
Street RangeLinden Blvd - Tilden AveAtlantic Ave - Dean StDean
St - 8th AveEastern Pkwy - St. Marks AveMilton St - Eagle
St-Washington Ave - Bedford AveBedford Ave - Brooklyn AveFlatbush
Ave - Washington AveAdams St - Flatbush Ave-Flushing Ave - Boerum
StGrand St - Skillman AveUnion Ave - Bushwick AveBroadway - Grand
StNorth 3rd St - North 7th StConey Island Ave - E. 17th StMenahan
St - DeKalb AveFulton St - Hancock StGreenpoint Ave - Meserole
AveBerry St - Graham AveCourt St - Hicks StCarlton Ave - Steuben
StBedford Ave - Kent AveEastern Pkwy - Empire BlvdAvenue T - Belt
PkwyLinden Boulevard - Flatlands AveE. New York Ave - Mother Gaston
Blvd15th St - 17th StFlatlands Ave - Avenue KBelt Pkwy - Seaview
AveFlatlands Ave - Farragut RdAvenue Z - Voorhies AveAtlantic Ave -
Union StFoster Ave - Avenue lFarragut Rd - Avenue lMetropolitan Ave
- Grand StUnion St - St. Johns PlLinden Blvd - Snyder AveReed St -
Commerce StAtlantic Ave - Park PlEastern Pkwy - Pacific StFlushing
Ave - Myrtle AveNorth 3rd St - North 12th St
Avenue3rd Ave3rd Ave4th Ave5th Ave5th Ave5th Ave5th Ave5th
Ave5th Ave7th Ave13th Ave13th St18th Ave86th St86th St86th St86th
St86th St (East Side)86th St (West Side)8th AveAtlantic AveAtlantic
AveAvenue JAvenue UBedford AveBerry StBrighton Beach
AveBroadwayBroadwayBushwick AveChurch AveChurch AveColumbia StConey
Island AveCortelyou RdCourt StCourt StCourt StCourt StCropsey
AveDriggs AveEastern PkwyEmmons AveFlatbush Ave
AvenueFlatbush AveFlatbush AveFlatbush AveFranklin AveFranklin
StFront/Water/Plymouth/JayFulton St Fulton StFulton StFulton Street
MallGateway CenterGraham AveGraham AveGrand StHavemeyer StKent
AveKings HighwayKnickerbocker AveLewis AveManhattan AveMetropolitan
AveMontague StMyrtle AveN. 6th StNostrand AveNostrand
AvePennsylvania AvePitkin AveProspect Park WestRalph AveRockaway
PkwyRockaway PkwySheepshead Bay RdSmith StThe Junction - Flatbush
AveThe Junction - Nostrand AveUnion AveUtica AveUtica AveVanbrunt
StVanderbilt AveWashington AveWyckoff AveWythe Ave
JAMAIC
A BAY
7
20
13
19
16
17
2153
67
52
85
7371
23
79 80
40
1 6
12
14 24
70
77
43
44
74
75
76
28
51
86
63
3145
34
35
33
8438
48
37
39
66
68
32
4282
83
69
29 3081
27
18
105
11
15
64
62
4647
78
25
22 54
50
60 2688
41 57
5859
49
2
8
34
9
36
55
56
61
72
65
87
$35 - $49 PSF$50 - $64 PSF$65 - $79 PSF$80 - $99 PSF$100 - $149
PSF$150 - $199 PSF$200 + PSF
34 Corridors from $35 - $49 PSF28 Corridors from $50 - $64 PSF8
Corridors from $65 - $79 PSF8 Corridors from $80 - $99 PSF6
Corridors from $100 - $149 PSF3 Corridors from $150 - $199 PSF1
Corridor from $200 + PSF
26 Corridors from $35 - $49 PSF10 Corridors from $50 - $64 PSF3
Corridors from $65 - $79 PSF4 Corridors from $80 - $99 PSF2
Corridors from $100 - $149 PSF
PPSF Range Total Corridors Per Price Range Total Corridor Per
Price Range
Five Years of Growth!
2014 Retail Corridor Map
2014 Retail Corridor Map Legend
2014 Corridor Map Legend 2009 Flashback
100%INCREASEIN PRICING
SINCE2009
ALL NINE CORRIDORSARE LOCATED IN
NORTHERN BROOKLYN
AT LEAST 100% INCREASE IN PRICING COMPARED TO 2009
N
EW
S
-
WWW.CPEXRE.COM WWW.CPEXRE.COM
I N T H
E P A S T 5 Y E A R S
28 BU S I N E S S E S O P E N E D O N F R
A NK L
I N A
VE
INCREASE AT BEDFORD AVE STATION
LARGEST%LINCREASE
S I NC E 2 0 0 1
CO M M E R C I A L SP A
C E
Court Street Having transitioned from mostly mom-and-pop shops
to a row of national retailers, Court Street rep-resents the
ultimate story of how a long-established corridor can still undergo
a transformation. With established tenants such as Trader Joes,
Starbucks, BareBurger, and Splendid, the demand for retail space on
Court Street has never been higher, especially from regional and
national tenants. With the addition of apparel giant J. Crew, the
corridor is becom-ing a logical target for other apparel
brands.
Bedford Avenue Bedford Avenue sees a constant stream of consumer
traffic thanks to trendy restaurants such as Fornino, The Meatball
Shop, Sweet Chick, and a soon-to-arrive Flemish gastro-brasserie
from the owners of ac-claimed biergarden Radegast. Whole Foods, at
the corner of Bedford Avenue and N. 4th Street, will further add to
its image as an extension of Union Square, not to mention its
appeal. The constant rumors that Apple is eyeing a space on this
coveted avenue certainly dont hurt
Fulton Mall In the past few years, Fulton Mall has experi-enced
quite the makeover. Recent arrivals such as H&M, Ar-mani
Exchange, Banana Republic, and recent arrival Nord-strom Rack bring
a different vibe to a corridor that not too long ago was mainly
populated by cellphone and sneaker stores. Moreover, the continued
interest in the corridor from national tenants and a recent
commitment from Macys to upgrade its Fulton location proves that
the renaissance of this iconic corridor is well underway.
Retail Corridors Transforming Due to High DemandFranklin Avenue
No corridor in Brooklyn has seen such a dramatic shift in such a
short period of time. Similar to Bed-ford Avenue, Franklin Avenue
is home to hip restaurants and cafs. Barboncino, Mayfield,
Chavelas, Franklin Park, Lazy Ibis, and new arrival CentAnni are
the main destinations on this rapidly developing epicurean avenue,
but national tenants are already peeking around for their next
Brooklyn location.
Cortelyou Road Nestled by the beautiful Queen Anne architecture
of Ditmas Park, Cortelyou Road wont re-ceive quite the same
attention from nationals as some oth-er Brooklyn locales; however,
demand from locally owned businesses will be very strong in this
tight-knit community. In fact, this high local demand is already
evident from the presence of well-reviewed restaurants and bars
such as The Farm on Adderley, The Costello Plan, and Sycamore, as
well as quaintly curated shops like Collyers Mansion.
Manhattan Avenue Once tenanted mainly by Polish businesses, this
corridor has recently experienced a diver-sification of its
storefronts. In the past five years, Manhattan Avenue has welcomed
operators like Starbucks, Calexico, Konditori, and the newly opened
Budin, a Scandinavian-style caf and design shop.
1 4
5
6
2
3
$35-$50
$100-$199
PSFPSF
2009COURT STREET
2014
Born in Brooklyn - Now Venturing Beyond!Welcome to Brooklyn -
Believe the Hype!
3M+
50%
SQUARE FEETHOUSING UNITSALREADY BUILT
BROOKLYNITESADDED SINCE 2003
ARE EATERIES
108,949
85%
47
ACRES INTHE PIPELINE
ACRES OFPARKLAND ADDED
HOUSING UNITSIN THE PIPELINE
5,5004,500
BROOKLYNITESAS OF JULY 2013
2,592,149
GREENPOINT & WILLIAMSBURG
IN THE ENTIRE SYSTEM
2012/2013
LINE RIDERSHIP HAD THE
SINCE 2007
INDOWNTOWNBROOKLYN
MADE AVAILABLE
-
WWW.CPEXRE.COM
Former Industrial HubsConverting to RetailUnable to afford the
higher rents of traditional storefronts and their typical Brooklyn
locations such as Downtown Brooklyn and Park Slope, many retailers
have turned to alternative ar-eas and spaces out of which to run
their businesses. In ad-dition, the influx of permanent residents
into Brooklyns less expensive alternatives to Manhattan and
Brooklyn Heights has created a new need for amenities and services
in neigh-borhoods like Williamsburg, the Gowanus, and, soon, Sunset
Park. As a result, the arrival of vendors and merchants has caused
a repositioning of many previously industrial buildings for retail
(and residential) use in these former manufacturing and shipping
centers.
In Williamsburg, the shift has already been well-documented.
Once a desolate industrial neighborhood, Williamsburg has captured
the attention of the retail industry nationwide with its
transformation from lofts and warehouse space into a trendy,
energetic hub for retailers.
It is bound to happen again, and indeed is already underway in
the Gowanus. Similar to Williamsburg, the Gowanus offers large
floor plates coupled with a great location how many other Brooklyn
neighborhoods have the advantage of being nestled between Park
Slope, Carroll Gardens, and Boerum Hill? and good subway access via
the R at Fourth Avenue and the F and G at Smith Street.
Whole Foods, Brooklyn Boulders, Dinosaur BBQ, and the Royal
Palms Shuffleboard Club have already opened suc-cessful storefronts
in this new retail frontier, while UFC Gym and Blinds-to-Go have
secured their new locations. 3rd Ave-nue is also quickly becoming a
gastronomic destination with restaurants such as Littleneck, The
Pines, and Runner & Stone opening to rave reviews, even drawing
food enthusiasts from Manhattan. In addition, the beautification of
the Gowanus canal and the development of several large-scale
residential projects will further alter the landscape of the
neighborhood and make it more attractive to retailers.
Looking a few years into the future, we expect Sunset Park to be
the next industrial area to follow suit in the boroughs retail
conversion. The Industry City area is already home to Costco and
MicroCenter. Others are certain to follow given the recent upgrades
made to the properties and the ease of access via car (less than 20
minutes to Downtown Manhat-tan), subway (serviced by the express D
and N trains, as well as the local R train), and bicycle (3rd, 5th,
and 7th Avenues all have bike lanes, with a proposed expansion of
the 3rd Av-enue bike plan already in the pipeline). Now that
Jamestown has thrown its weight behind Industry City, we also
expect cycling enthusiasts can look forward to 40 miles of pathways
from Williamsburg to Rockaway Beach, Queens on the fu-ture Brooklyn
Waterfront Greenway. Furthermore, the area is quickly becoming a
bustling hub for artists and other creative types a well-known
retail vector.BROOKLYN BOULDERS
ROYAL PALMS SHUFFLEBOARD CLUB
$
-
WWW.CPEXRE.COM
Former Industrial HubsConverting to Retail
Why Brooklyn? Why Now?
10$ 15MBILLI NIN PRIVATE INVESTMENTMORE HOTEL ROOMS BY
OF FIRMS SAY MORE THAN HALFOF EMPLOYEES LIVE IN BROOKLYN
FIRMS IN TRIANGLE
FIRMS OUTSIDE TRIANGLE
FIRMS
(PROJECTED)2012 2015
SQUARE FEET OF WORK SPACE
ADDITIONAL JOBS SUPPORTED
TOTAL ECONOMIC IMPACT OUTPUT
THE TECH TRIANGLE CONSISTS OF THE NAVY YARD, DOWNTOWN BROOKLYN,
AND DUMBO
OF FIRMS SAY ALLOF EMPLOYEES LIVE IN BROOKLYN
INVESTMENTS SINCE 2006
2M SQUARE F
EET
SQUARE FEET
RESIDENTIAL UNITS
VISITED
LAST
YEAR
HOTELROOMS
DEVELOPMENT
1M RETAILOFFICE
17,53826M
TECH BROOKLYN
2,215 25% 2018BROOKLYN
77.2%
31.5%6393.1M43K$6B
61.1%5231.7M23K$3B 51.7%
-
WWW.CPEXRE.COM
Forecasting BrooklynsNext Retail DestinationsBerry
Street(Williamsburg N. 8th St. to N. 3rd St.)Popular tenants such
as Radegast Hall, Blue Bottle, and Ret-ro Fitness will soon be
joined by Whole Foods on this rapidly changing corridor. With
exciting tenants like these, Berry Street has the potential to
recreate, along with Bedford Avenue, a similar synergy in
Williamsburg to that which already exists along Court and Smith
Streets in Cobble Hill and Boerum Hill.
Fifth Avenue(Greenwood Heights 17th St. to 23rd St.)As an
extension of Park Slope, this stretch of Fifth Avenue is quietly
emerging as a viable option for operators who are being priced out
of more expensive alternatives in Northern Brooklyn. Korzo, Sekt,
and Quarter Bar have already spotted the growth potential of the
area and have seized the opportunity.
Nostrand Avenue(Crown Heights Dean St. to President St.)Nostrand
Avenue is the next logical destination for retailers in this part
of Brooklyn. Indeed, with great access to the subway and a recent
uptick in residential development in the immedi-ate area, Nostrand
Avenue is slated to share in the success of preceding retail
arteries such as Franklin Avenue, Vanderbilt Avenue, and Flatbush
Avenue.
IN THE PAST
IN WILLIAMSBURG
HIGHER
3Q 2010 3Q 2013
IN THE PAST
IN CROWN HEIGHTS
NEW RESIDENTIALPROJECTS
RESIDENTIALCONDO SALES
OR
COMPLETED
INCREASED
4 YEARS
10YEARS
20%
$477,500
25STARTED
MEDIAN SALE PRICEGREENWOOD HEIGHTS
128%
-
WWW.CPEXRE.COM
CPEX New YorkRetail Leasing Team
Timothy D. KingManaging PartnerTimothy D. King aligned with
partner Brian Leary to found CPEX in 2008. In his role as Managing
Partner, Mr. King co-heads the firms business line divisions and
business de-velopment. During his forty-plus years in real estate
operations, he has been instrumental in attracting numerous
national retailers to the outer boroughs. Under his direction, the
New York Retail Leasing Team has become a powerhouse of performance
and the firm of choice for landlords, tenants, and tenant
representation brokers.
Ryan CondrenManaging DirectorRyan Condren was promoted to
Managing Director of the New York Retail Leasing Team in 2011 after
joining CPEX as an Associate Director in 2008. His achievements in
retail leasing have gained him recognition as a two-time CoStar
Power Broker (2011, 2012), and he was also honored in the Home
Reporter and the Brooklyn Spectator for earning the 2012 Brook-lyn
Rising Stars Award. With Mr. Condren as one of its leaders, the New
York Retail Leasing Team has been responsible for the completion of
over 80 lease transactions totaling more than 225,000 square feet
of retail space with an aggregate lease value of over $175
million.
Kristina TrigliaAssociateKristina Triglia has been a part of the
CPEX team since it was formed in 2008. As an As-sociate, she
supports the New York Retail Leasing Team by conducting market
research, valuating leases, preparing marketing packages,
performing client reporting, and executing the lease of properties.
Since transferring to Retail Leasing in the winter of 2011, Ms.
Triglia has assisted in the completion of retail lease agreements
with Capital One, LA Boxing, PM Pediatrics, SUPRA, and The Sliding
Door Company, among other notable tenants.
George DanutAssociateGeorge Danut has been a part of the CPEX
New York Retail Leasing Team since Sep-tember 2012. As an
Associate, he supports the New York Retail Leasing Team by
provid-ing market research, valuating leases, preparing marketing
packages, and executing the lease of properties. Since the
beginning of 2013, Mr. Danut has assisted in the lease of over 20
retail spaces with such notable tenants as Harbor Freight, LePort
Schools, City MD, Capital One, and Bar Method.
RESIDENTIALCONDO SALES
-
PREPARED BY THE CPEX RETAIL LEASING TEAM81 WILLOUGHBY STREET,
8TH FLOOR | BROOKLYN, NY | 11201 | 718.935.1800
WWW.CPEXRE.COM
