New retail spaces in under-construction buildings on Williamsburg’s North 6th Street are sending asking rents soaring.
The four-block stretch between Driggs and Kent avenues saw asking rents climb 24 percent in the past year – the biggest jump in the borough – to $259 per square foot for ground-floor space, according to the Real Estate Board of New York’s Brooklyn retail report.
“Retail spaces coming onto the market from new developments are diversifying retail opportunities and driving up asking rents in these top Brooklyn corridors,” REBNY president John Banks said. “Furthered by the desirability for unique retail options and foot traffic from visitors and local residents, retail real estate continues to be strong in demand in the borough.”
Overall, average asking rents climbed in eight of the 15 shopping corridors REBNY tracks in the borough.
Bedford Avenue between Grand and North 12th streets once again had the highest asking rents in Brooklyn at $373 per square foot, up 7 percent last year.
Despite the Metropolitan Transportation Authority’s plan to shut down part of the L train for 18 months starting in 2019, observers said they don’t expect a significant impact on retail rents.
New developments in Williamsburg are expected to bring more than 4,000 residential units within the next year and close to 1,000 new hotel rooms in the next few years, according to the Commercial Observer.
“Residents will still drive in, they’ll take Uber, and they will take ferries,” RKF’s Barry Fishbach told the website. “There’s a lot of people who live in Williamsburg, maybe they will stay in Williamsburg. People aren’t coming from Manhattan to go to Whole Foods and Apple [in Williamsburg]. There are plenty of Whole Foods and Apple stores in Manhattan.” [CO] – Rich Bockmann