Brooklyn Retail Rents Steady or Better in Most Areas for 2025: Report

The Brooklyn retail real estate market has been cutting through national economic uncertainty like a hot knife, with strong deal-making in the first half of 2025, Commercial Observer has learned.

In 10 out of 16 Brooklyn corridors surveyed by the Real Estate Board of New York (REBNY), asking rents have stabilized or grown this year, with the largest increases on Washington Street in Dumbo, Fulton Street in Downtown Brooklyn and North Sixth Street in Williamsburg. Those last two neighborhoods, along with Gowanus, led the borough in retail asset sales and leasing from January to August.

Much of this growth has been driven by a steady increase in planned housing projects, along with new food and beverage outlets geared toward the Gen Z preference for “little treats,” a cafe and bakery trend that has been largely powered by Instagram and TikTok, according to REBNY.

Some areas did see declines in rent, however. Rents on Court Street between Montague Street and Atlantic Avenue in Downtown dropped 8 percent since the second half of 2024, from $125 per square foot to $115 per square foot. Rents on nearby Smith Street fell 5 percent to $90 per square foot, according to REBNY.

Still, the overall outlook for Brooklyn retail remains strong.

“A widening geographic footprint of notable transactions and surging investment activity underscore confidence in Brooklyn’s retail market,” Keith DeCoster, vice president of market data and policy at REBNY, said in a statement. “While 2025 has brought some volatility in the broader U.S. economy, Brooklyn’s top retail corridors have held up well. With new mixed-use developments coming to market and continued enthusiasm for residential development in the borough, many brokers and landlord representatives are bullish on continued performance and maturity in the market.”  

Investment in the borough by real estate investment trusts has been one of the most encouraging indicators, according to the group. 

Investment sales in Brooklyn totaled more than $200 million in the first eight months of 2025, exemplified by Empire State Realty Trust acquiring 88-90 North Sixth Street and 169 Wythe Avenue in Williamsburg for $31 million in July 2025.

That same month, Acadia Realty Trust bought 70 North Sixth Street and 93 North Sixth Street, which are occupied by outdoor apparel brand Patagonia, shoe retailer Birkenstock and Swiss athletics brand On, for $50 million, CO reported at the time.

Just a few months prior, Acadia bought 95 North Sixth Street, 97 North Sixth Street and 107 North Sixth Street for $60 million.

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