2016 Brooklyn Retail Report

INTRODUCTION
CPEX Real Estate is pleased to present our sev-
Considering the dynamics of the New York Retail Market and the
enth annual Brooklyn Retail Report, a comprehen-
overall economic conditions, these pricing levels are not only subject
sive survey of the primary, secondary, and tertiary
to change, but will most likely fluctuate as various market conditions,
retail corridors throughout the borough.
supply, demand, as well as economic indicators change from quarter
to quarter. While the actual pricing levels may change in the coming
After an 80% increase in the number of notable re-
months, this report can be an important tool for leasing comparisons,
tail corridors from 2013 to 2015, our 2016 Brooklyn
for calculating percent changes across neighborhoods and boroughs,
Retail Report found that Brooklyn retail has broken
and for quantifying Net Operating Income levels in estimating cap
into the top ten nationally in terms of pricing (ex-
rates and performing property valuations. This report can assist prop-
cluding New York, New York as an outlier in the
erty owners and business owners with a current and up-to-date syn-
national retail market). With retailers flocking to al-
opsis of their market place.
ready established corridors this past year, pricing
in prevalent retail areas such as the Fulton Street
Mall and Bedford Avenue has increased dramatically. As a result, Brooklyn retail has reached levels on
par with the top retail destinations in Chicago, San
Francisco, and Miami. With retailers like Saks Off
Fifth, Wegmans, and Nike (among others) entering
the Brooklyn market, this “outer borough” continues its emergence on the national retail scene.
The 2016 CPEX Brooklyn Retail Report is compiled
by the CPEX Brooklyn Retail Leasing Team, with
assistance from our research and graphics departments. Careful attention has been paid to summarize the current market conditions. The pricing for
For retail landlords and tenants with specific site analysis require-
each corridor provided is an estimate and a snap-
ments, please note that each and every property provides unique
shot of the current period, based on the data col-
characteristics which affect its potential lease pricing levels. Char-
lected from internal and external sources, includ-
acteristics such as location, build-out, neighboring tenants, available
ing: CPEX completed transactions, market reports
transportation, street conditions, residential density, traffic, etc., all
from our in-house research studies, and various
have an important impact on contracted leasing rates. As the eco-
data resources (Brownstoner.com; City-Data; City-
nomic market impacts the retail industry, we at CPEX will continue to
Realty; Commercial Observer; Cushman & Wake-
monitor such changes and make them available to our clients. Please
field; Downtown Brooklyn Partnership; NYC MTA;
call us if you have any questions regarding this report, if you require
New York Daily News; StreetEasy; The Real Deal;
further information pertaining to your real estate or business, or if you
U.S. Census Bureau; and the Wall Street Journal).
are interested in any retail opportunities we currently have available.
The CPEX Brooklyn Retail Leasing Team
Timothy D. King Managing Partner
[email protected] (718) 687-4210
Ryan Condren
Managing Director
[email protected]
(718) 687-4212
George Danut Associate Director
[email protected] (718) 687-4220
Keat Chew
Associate
[email protected]
(718) 687-4209
WWW.CPEXRE.COM
2016 BROOKLYN RETAIL CORRIDOR MAP
Retail Density
34 corridors in
2.69 square miles
Highlighted
Neighborhoods
2X
ZOOM
92
83
90
118
49
notable corridors
concentrated
11
in just 3.7%
71 land area
15
24
42
113
34 Corridors from $50 - $64 PSF
$65 - $79 PSF
18 Corridors from $65 - $79 PSF
$80 - $99 PSF
14 Corridors from $80 - $99 PSF
$100 - $149 PSF
8 Corridors from $100 - $149 PSF
$150 - $199 PSF
3 Corridors from $150 - $199 PSF
$200 - $250 PSF
$250 - $300 PSF
1 Corridor from $200 - $250 PSF
$300+ PSF
1 Corridor from $250 - $300 PSF
1 Corridor from $300+ PSF
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100
44
77
106
97
65
105
99
104
66
27
26
23
N
67
84
32
98
W
E
107
Total Corridors Per Price Range
41 Corridors from $35 - $49 PSF
101
64
2016 RETAIL CORRIDORS
$50 - $64 PSF
112
22
28
$35 - $49 PSF
58
31
21
25
PPSF Range
103
43
47
1
85
63
48
20
120
119
86
17
41
18
68
39
116
102
13
square mile
55
91
50 29 73
54
30 60
51
34
61 74
2
108
4
75
52
7
56
76
8
109
111
115 45
9 62
5
69
3
117
10 15
95
70 96
19 16
6
12
of Brooklyn’s
40
80
79
82
114
78
89
81
72
28%
of Brooklyn’s
94
36 33
57
35 110
38
46
88
121
93
Boerum Hill
Brooklyn Heights
Carroll Gardens
Cobble Hill
Downtown Brooklyn
Gowanus
Park Slope
87
71
53
59
37
Brooklyn’s Michelin-starred restaurants
have tripled in number since 2014
S
BAY
JAMAICA
2016 BROOKLYN RETAIL CORRIDORS
1
3rd Ave
Bay Ridge Ave
97th Street
61
Flatbush Ave
Atlantic Ave
St. Marks Ave
2
3rd Ave
Atlantic Ave
Union St
62
Flatbush Ave
St. Marks Ave
8th Ave
3
3rd Ave
Union St
Prospect Ave
63
Flatbush Ave
Empire Blvd
Parkside Ave
4
4th Ave
Atlantic Ave
Sackett St
64
Flatbush Ave
Linden Blvd
Cortelyou Rd
5
4th Ave
Sackett St
6th St
65
Flatbush Ave - The Junction
Foster Ave
Avenue I
6
4th Ave
6th St
18th St
66
Flatbush Ave
Avenue L
Avenue P
7
5th Ave
Flatbush Ave
Bergen Street
67
Flatbush Ave
Avenue R
Avenue V
8
5th Ave
Bergen Street
Berkeley St/Sackett St
68
Flushing Avenue
Wilson Ave
Wyckoff Ave
9
5th Ave
Berkeley St/Sackett St
3rd St
69
Franklin Ave
St. Marks Ave
St. Johns Pl
10
5th Ave
3rd St
12th St
70
Franklin Ave
St. Johns Pl
Eastern Pkwy
11
5th Ave
12th St
16th St
71
Franklin St
Eagle St
Milton St
12
5th Ave
17th St
23rd St
72
Front/Water/Plymouth/Jay St
-
-
13
5th Ave
47th St
54th St
73
Fulton Street Mall
Adams St
Flatbush Avenue
14
5th Ave
Senator St
97th Street
74
Fulton St
Flatbush Ave
Washington Ave
15
7th Ave
Lincoln Pl
1st St
75
Fulton St
Washington Ave
Bedford Ave
16
7th Ave
1st St
9th St
76
Fulton St
Bedford Ave
Brooklyn Ave
17
7th Ave
9th St
16th St
77
Gateway Center
-
-
18
8th Ave
53rd St
61st St
78
Graham Ave
Skillman Ave
Grand St
19
9th St
4th Ave
6th Ave
79
Graham Ave
Boerum St
Flushing Ave
20
13th Ave
44th St
49th St
80
Grand St
Kent Ave
Bushwick Ave
21
13th Ave
75th St
82nd St
81
Havemeyer St
Grand St
Broadway
22
18th Ave
61st St
Bay Ridge Pkwy
82
Henry St
Middagh St
Clark Street
23
86th St
23rd Ave
Stillwell Ave
83
Kent Ave
North 7th St
North 3rd St
24
86th St
4th Ave
Fort Hamilton Pkwy
84
Kings Highway
Coney Island Ave
East 17th St
25
86th St
18th Ave
20th Ave
85
Knickerbocker Ave
DeKalb Ave
Menahan St
26
86th St
Bay Pkwy
23rd Ave
86
Lewis Avenue
Hancock St
Fulton St
27
86th St (East Side)
20th Ave
Bay Pkwy
87
Manhattan Ave
Freeman St
Greenpoint Ave
28
86th St (West Side)
20th Ave
Bay Pkwy
88
Manhattan Ave
Greenpoint Ave
Nassau Ave
29
Atlantic Ave
Clinton St
Smith St
89
Metropolitan Ave
Berry St
Graham Ave
30
Atlantic Ave
Smith St
4th Ave
90
Montague St
Hicks St
Court St
31
Avenue J
Coney Island Ave
East 15th St
91
Myrtle Ave
Carlton Ave
Steuben St
32
Avenue U
Coney Island Ave
Haring St
92
North 6th St
Kent Ave
Bedford Ave
33
Bedford Ave
North 8th St
North 3rd St
93
North 4th St
Kent Ave
Bedford Ave
34
Bedford Ave
Metropolitan Ave
South 5th St
94
Nassau Ave
Dobbin St
Russell St
35
Bedford Ave
DeKalb Ave
Fulton Street
95
Nostrand Ave
St. Marks Ave
Eastern Pkwy
36
Berry St
North 8th St
North 3rd St
96
Nostrand Ave
Eastern Pkwy
Empire Blvd
37
Brighton Beach Ave
Brighton 4th St
Coney Island Ave
97
Nostrand Ave
Avenue D
Foster Ave
38
Broadway
Kent Ave
Roebling St
98
Nostrand Ave
Avenue T
Belt Pkwy
39
Broadway
Flushing Ave
Park St
99
Nostrand Ave - The Junction
Farragut Rd
Avenue I
40
Bushwick Avenue
Metropolitan Ave
Johnson Ave
100
Pennsylvania Ave
Linden Blvd
Flatlands Ave
41
Church Ave
East 7th St
Argyle Rd
101
Pitkin Ave
East New York Ave
Mother Gaston Blvd
42
Church Ave
Buckingham Rd
Ocean Ave
102
Prospect Park West
15th St
17th St
43
Church Ave
Ocean Ave
Bedford Ave
103
Ralph Ave
Broadway
Decatur St
44
Church Ave
East 49th St
East 53rd St
104
Ralph Ave
Flatlands Ave
Avenue K
45
Classon Ave
Atlantic Ave
Eastern Pkwy
105
Rockaway Pkwy
Farragut Rd
Flatlands Ave
46
Columbia St
DeGraw St
President St
106
Rockaway Pkwy
Seaview Ave
Belt Pkwy
47
Coney Island Ave
Avenue J
Cortelyou Rd
107
Sheepshead Bay Rd
Avenue Z
Voorhies Ave
48
Cortelyou Rd
Coney Island Ave
East 16th St
108
Smith St
Atlantic Ave
Union St
49
Court St
Montague St
Atlantic Ave
109
Smith St
Union St
2nd Pl
50
Court St
Atlantic Ave
Bergen St
110
Union Ave
Metropolitan Ave
Grand St
51
Court St
Bergen St
Baltic St
111
Union St
Nevins St
4th Ave
52
Court St
Baltic St
4th Pl
112
Utica Ave
St. Johns Pl
Union St
53
Cropsey Ave
Belt Pkwy
Neptune Ave
113
Utica Ave
Linden Blvd
Snyder Ave
54
Dekalb Ave
Cumberland St
Clinton Ave
114
Van Brunt St
Commerce St
Reed St
55
Dekalb Ave
Flatbush Ave
Fort Greene Pl
115
Vanderbilt Ave
Atlantic Ave
Park Pl
56
Douglass St
Nevins St
4th Ave
116
Washington Ave
Flushing Ave
Park Ave
57
Driggs Avenue
North 11th St
Grand St
117
Washington Ave
Pacific St
Eastern Pkwy
58
Eastern Pkwy
Schenectady Ave
Utica Ave
118
Willoughby St
Boerum Pl
Flatbush Ave
59
Emmons Ave
Nostrand Ave
Ocean Ave
119
Wilson Ave
Flushing Ave
Dekalb Ave
60
Flatbush Ave
Willoughby St
Livingston St
120
Wyckoff Ave
Flushing Ave
Myrtle Ave
121
Wythe Ave
North 12th St
North 3rd St
BROOKLYN VS. USA
*Excluding New York, New York
LA SF CHI BK MIA DC
From Brooklyn to Dakota:
3 of top 10 U.S. retail corridors are in Brooklyn
Jay-Z has rapped about his fame “from Brooklyn to Dakota.” Brooklyn retail? Also ranks among the best, from coast to coast.
*Excluding New York, New York
Rent as of June
2015 (PPSF)
Los Angeles
Rodeo Drive (Beverly Hills)
$800
2
San Francisco
Union Square
$650
3
Chicago
North Michigan Avenue
$525
4
San Francisco
Post Street
$495
#
City
1
Location
55
Brooklyn
Brooklyn
6
Chicago
East Oak Street
$340
7
Miami
Lincoln Road
$325
88
9
1010
Brooklyn
Brooklyn
Washington, D.C.
Brooklyn
Brooklyn
Williamsburg: Bedford
Bedford Avenue (North
Williamsburg:
(North 8th
8th St
St --Metropolitan
MetropolitanAve)
Ave)
Downtown Brooklyn: Fulton Street Mall (Adams St - Flatbush Ave)
Penn Quarter
Downtown Brooklyn: Court Street (Montague St - Atlantic Ave)
$350
$350
$250
$250
$220
$200
$200
Brooklyn’s 2.6M residents
would form America’s
4th most populous city
BROOKLYN WELCOMED IN 2015:
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THE MORE THINGS CHANGE,
THE MORE THEY STAY THE SAME
Five Neighborhoods Undergoing Residential
Growth While Retail Rents Stay Status Quo
With an influx of new housing options and residents
over the past decade, several neighborhoods have, in
recent years, surged in popularity (not to mention pricing) and are slowly forging a new identity. As expected,
and as any retail connoisseur will vouch, the tenant mix
has also changed or is in the process of doing so as
retailers seek to be part of the transformation of these
communities. However, even as more and more farm
to table eateries, chic cafes, boutique storefronts, and
fitness concepts offer new amenities along Manhattan
Avenue in Greenpoint or on Park Slope’s 5th Avenue,
the average price per square foot remains constant. Indeed, the main change is in the profile of the retailer,
not the tenants’ rental rates. Rather than undergoing a
complete retail reinvention in conjunction with the rapid residential growth, these corridors that are and have
been established retail destinations are experiencing a
simple retail reshuffling.
1 2 3
4 5
Bed-Stuy
Park Slope
(Washington Avenue to Brooklyn Avenue)
(9th Street to 16th Street)
Greenpoint
Manhattan Avenue
(Freeman Street to Nassau Avenue)
Fulton Street
Cobble/Boerum Hill
5th Avenue
Bushwick
Atlantic Avenue
Knickerbocker Avenue
(Clinton Street to 4th Avenue)
(DeKalb Avenue to Menahan Street)
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NOTABLE CORRIDORS
1
Montague Street (Court St. to Hicks St.)
Although it is home to nine banks in the one block
stretch between Court and Clinton Streets, Montague Street offers plenty of variety of retail options. The street was the first Brooklyn stop for
tenants such as Banana Republic, Ann Taylor Loft,
Le Pain Quotidien and MAC Cosmetics, and it continues to thrive and attract retailers such as Kiehl’s
and popular Manhattan brunch eatery Friend of a
Farmer. In addition, the reopening of the historic
279-room Hotel Bossert is expected to further enhance the retail and restaurant revenues on this
notable Brooklyn corridor.
2
Bossert Hotel - 98 Montague Street
Flatbush Avenue (Atlantic Ave. to 8th Ave.)
Adidas, Shake Shack, Doughnut Plant and Parm
are some of the operators that set up shop on this
corridor recently in order to take advantage of
the Barclays Center crowds. But Flatbush Avenue
is more than just a landing spot for sports fans or
concert goers. BKLYN Larder, Morgan’s BBQ, and
Franny’s are well-established operations that cater
mainly to the Park Slope and Prospect Park communities in addition to the rest of Brooklyn. As if
that’s not enough, popular Brooklyn grocer Union
Market and SoulCycle have also recently signed
leases on the corridor.
2015 LEASES
3
The Flatbush Junction
The remarkable success of the Triangle Junction
with one of the country’s largest Target stores,
Home Goods, Men’s Wearhouse, and David’s Bridal,
among many other regional and national retailers,
has enticed an international brand such as Nike to
open its flagship store in this already established
retail destination. Along with its proximity to the
2 and 5 subway lines, the overall growth and proposed expansion of Brooklyn College – with its
18,000 students, faculty, and staff – will only further
enhance the appeal of this retail hub.
Nike’s first Brooklyn location - 2236 Nostrand Avenue
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DEVELOPING CORRIDORS
1
4th Avenue
(Sackett St. to 9th St.)
With a flurry of new development projects, 4th
Avenue has also seen an influx of new retail tenants looking to capitalize on the transforming
corridor. Blink Fitness, Gymboree, UFC Gym,
and Red Wing all opened shop on 4th Avenue,
and the CPEX Brooklyn Retail Leasing Team negotiated a lease with Brooklyn Drones Inc., the
first drone retailer in all of New York City.
2
Grand Street
Rendering of 275 4th Avenue
(Kent Ave. to Marcy Ave.)
This section of Grand Street in Williamsburg already had an eclectic mix of retail options, anchored by the St. Mazie Bar & Supper Club at its
eastern end and Devoción at the opposite end. The
corridor is also home to Williamsburg Cinemas,
Bozu, Slat + Charcoal, Cucina and Tavola, and the
popular Brooklyn Running Co. In 2015, it solidified
its status as a nicely curated retail destination with
new tenants Rudy’s Barbershop, The Bellows Bar
& Kitchen, and The Four Horsemen, among others.
TWENTY+
LEASES IN
2014 & 2015
3
Vanderbilt Avenue (Atlantic Ave. to Park Pl.)
Already an established neighborhood retail corridor with popular foodie destinations such as The
Vanderbilt, Milk Bar, and the original Ample Hills
Creamery, it has recently added culinary options
such as Cooklyn, The Little Cupcake Bakeshop,
and trendy Chuko Ramen and its sister operation Bar Chuko located across the street. With
Pacific Park and its over 6,000 new residential
units set to open soon, Vanderbilt Avenue will
only continue its growth as one of Brooklyn’s
go-to retail corridors.
Rendering of Pacific Park
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THE CPEX BROOKLYN
RETAIL LEASING TEAM
Timothy D. King
Ryan Condren
George Danut
Keat Chew
Managing Partner
Managing Director
Associate Director
Associate
Timothy D. King aligned with
partner Brian Leary to found
CPEX in 2008. In his role as
Managing Partner, Mr. King coheads the firm’s business line
divisions and business development. During his forty-plus
years in the real estate industry, he has been instrumental
in attracting numerous national
retailers to the outer boroughs.
This includes Brooklyn’s largest
retail lease of 2014, in which
Bed Bath & Beyond and three
of its subsidiaries committed
to over 100,000 square feet at
850 3rd Avenue in Sunset Park,
and the first outer borough location for Saks OFF 5TH, also
at 850 3rd Avenue. Under his
direction, the Brooklyn Retail
Leasing Team has become a
powerhouse of performance
and the firm of choice for landlords, tenants, and tenant representation brokers.
Ryan Condren is the Managing
Director of the Brooklyn Retail
Leasing Team, having joined
CPEX as an Associate Director
in 2008. His achievements in retail leasing have gained him recognition as an Emerging Leader
in Retail by Real Estate Forum
magazine and a three-time CoStar Power Broker (2011, 2012,
2014). He has also been honored
by the Home Reporter and the
Brooklyn Spectator as a recipient of the 2012 Brooklyn Rising
Stars Award. With Condren as
one of its leaders, the Brooklyn
Retail Leasing Team has been
responsible for the completion
of over 100 lease transactions
totaling more than 550,000
square feet of retail space with
an aggregate lease value of over
$450 million. In the course of his
career, Condren has worked
with an impressive collection
of landlords, developers, and
institutions in achieving their
retail leasing objectives, including Jamestown Properties, the
Lefrak Organization, the Naftali
Group, Rockrose, the Quinlan
Group, and Hidrock Realty.
George Danut has been a part
of the CPEX Brooklyn Retail
Leasing Team since September
2012. As an Associate Director,
he supports the Retail Leasing
Team by valuating leases, providing market research, preparing marketing packages, and executing the lease of properties.
Danut has assisted in the lease
of over 60 retail spaces with
such notable tenants as Bed
Bath & Beyond, Harbor Freight,
LePort Schools, Gymboree Play
& Music, Bar Method, and Benefit Cosmetics. Danut received
his Bachelor of Arts in Political
Science from Columbia University in 2009. He was a member
of the Columbia University Economics Society and the Columbia University Romanian Club.
Danut currently resides in the
Park Slope section of Brooklyn.
He is fluent in Romanian.
Keat Chew joined the Brooklyn
Retail Leasing Team in May 2015.
Raised in a Malaysian household,
he speaks Mandarin, Cantonese,
and Hakka to bring Chinese fluency to the company. Prior to
joining the team, Chew was an
Associate on the Mixed-Use Investment Sales Team, following his completion of the CPEX
Sales Training Program in 2014.
During his time with the MixedUse Team, he completed nine
transactions totaling more than
90,000 square feet, with an aggregate sales value of over $35
million. In the past year, Chew
was actively involved in over 10
leases with tenants such as Saks
OFF 5TH, Marine Layer, and
iLoveKickboxing. Chew graduated from Lehigh University with a
Bachelor of Science in Business
and Economics, having majored
in Finance and Business Information Systems with a concentration on real estate and engineering. As an undergraduate,
he co-founded the Psi chapter of
the Chi Phi Fraternity.
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NOTABLE TRANSACTIONS
Completed by the CPEX Retail Leasing Team
850 3rd Avenue
850 3rd Avenue
666 Greenwich Street
195 Berry Street
365 4th Avenue
257-267 Pacific Street
341 Eastern Parkway
240 Atlantic Avenue
125 5th Avenue
168 Court Street
71 Hoyt Street
1 Brooklyn Bridge
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PREPARED BY THE CPEX BROOKLYN RETAIL LEASING TEAM
81 WILLOUGHBY STREET, 8TH FLOOR | BROOKLYN, NY | 11201 | 718.935.1800
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