What were Brooklyn retail market asking rents and trends in Winter 2016?
Brooklyn retail asking rents remained strong in Winter 2016 with Bedford Avenue leading at $361 per square foot and most corridors showing modest rent growth.
- Bedford Avenue maintained Brooklyn's highest average retail asking rent at $361 per square foot in Winter 2016 - North 6th Street saw the largest increase with a 4.8% rise pushing average asking rents to $218 per square foot - Brooklyn retail rents were strong across most corridors reflecting increasing residential density and consumer spending - Secondary streets offered entry opportunities at significantly lower cost for retailers with flexible location criteria - New York retail market data is an input for companies evaluating US operational presence requiring physical commercial space
In Winter 2016, average asking rents in Brooklyn remained strong since the previous summer survey. North Brooklyn average asking rents saw small increases across most corridors, with the biggest increase on North 6th Street, where new availabilities pushed the average asking rent up 4.8 percent to $218 per square foot. Bedford Avenue, between Grand Avenue and North 12th Street, maintained the highest average asking rent for ground floor retail space in Brooklyn at $361 per square foot, a 3.9 percent increase from Summer 2015.
Brooklyn Heights, Cobble Hill, and Downtown Brooklyn
Montague Street in Brooklyn Heights demonstrated how average asking rents can change dramatically in a corridor when there is little availability. During Winter 2016, the average asking rent jumped over 25 percent to $188 per square foot. Cobble Hill asking rents on Court Street increased 7.8 percent to $175 per square foot, and Smith Street increased 15.1 percent to $139 per square foot.
Park Slope
Both corridors in Park Slope reported increases. The average asking rent on 7th Avenue reached $96 per square foot, up 11.4 percent from the previous report. The average on 5th Avenue increased approximately 5 percent to $85 per square foot.
While this report shows changes in average asking rents across most corridors, short-term fluctuations may only be the result of spaces coming on or off the market. Building enough historical data over multiple reporting periods is necessary to identify long-run trends that suggest a gradual market shift.
Brooklyn's retail market in Winter 2016 reflected a dynamic where strong neighborhood-level demand from increasing residential density was pushing asking rents to new highs in established corridors while creating emerging opportunities in secondary streets at more accessible entry points. Bedford Avenue's position at $361 per square foot as the highest-rent Brooklyn corridor illustrated the premium commanded by established foot traffic and brand association, while data from secondary corridors showed the range of cost profiles available to retailers calibrating their market entry against their revenue model.
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