Leases  ·  Retail

Floor & Decor Leases 129K-SF Space in Sunset Park

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Madison Capital" class="company-link">Madison Capital and Salmar Properties are backfilling space left behind by Bed Bath & Beyond.

The Atlanta-based retailer Floor & Decor is opening up its 16th outpost in the tri-state area — and its first in New York City — at 850 Third Avenue in Sunset Park, Brooklyn, after signing a 129,000-square-foot lease. News of the deal was first reported by the New York Business Journal.

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The length of the lease was 15 years and the average asking rent for retail in Brooklyn was $554 per square foot in the first quarter of 2024, according to the Business Journal and a PropertyShark report.

Floor & Decor leased the space as Bed Bath & Beyond was closing, so there was no asking rent, Madison Capital said.

In the past 12 months, Floor & Decor has gone from 200 national locations to 228, according to the company. The Brooklyn store is scheduled to open May 6.

“Bringing our full-sized warehouse store to New York City’s most populous borough is incredibly exciting given the limited opportunities in Brooklyn to accommodate a home improvement store of our immense magnitude,” Bryan Dodge, chief business development officer at Floor & Decor, said in a statement. “Brooklyn also illustrates our unique ability to adapt our store model to meet our customers in their neighborhoods.”

Jonathan Ratner, managing director of Madison Capital, represented the landlord in-house while Katz & Associates" class="company-link">Katz & AssociatesBrian Katz handled negotiations for Floor & Decor. Katz did not immediately respond to a request for comment.

“Floor & Decor’s business fits perfectly with the Class A commercial space offerings and robust infrastructure at this historic property, and we look forward to their success at the building and in Sunset Park,” Ratner said in a statement.

Mark Hallum can be reached at mhallum@commercialobserver.com.