Downtown Brooklyn Office Space “Selling Out This Year”
With Dumbo at 1.25 percent vacancy in its nine buildings and Gowanus’ creative space nearly as tight, I predict Downtown Brooklyn will be the next to shift to a landlord’s market.
Already challenging for tenants due to limited choices in the small market, Downtown Brooklyn is facing a ‘sell-through’ as MetroTech sublets dry up, Chase repositions its space, and the older post- and prewar buildings fill up. Even the decrepit 395 Flatbush Extension is being upgraded by Verizon for relocated employees.
Seven Class C buildings have or will convert to residential use including 75 Clinton, 101 Clinton, 166 Montague, 505 Fulton, 76 Bridge and 210 Livingston, as well as two others to be announced.
While legal, government and not-for-profit users are in slow decline, new users have stepped up, including tech and creative tenants, and other new legal users aside from tort law.
Brooklyn is now a global location, known worldwide. The commercial success of Dumbo has changed the game: many major retail names are landing in the area, with more to come, including Sephora.
The entry level prewars off the Fulton Mall are 98 percent occupied, as is 26 Court Street, while 16 and 32 Court streets. are steadily leasing up, and Montague Street has only a few options left.
I predict few choices for tenants by the end of the year in Downtown Brooklyn. Tenants, speak now or forever hold your peace!