Big-name tenants still not won over by BK

Roughly 7M sf of new office space is planned
May 04, 2017 11:15AM

Brooklyn Bridge and Downtown Brooklyn

Despite an influx of new office space, Brooklyn hasn’t yet attracted big-name Manhattan companies.

Roughly 7 million square feet of new office space is planned for the borough, but Brooklyn hasn’t yet generated the kind of interest needed to meet future supply, Bloomberg reported. Not a single non-government employer has inked a lease for more than 100,000 square feet since mid-2015. The last major deal was WeWork’s agreement to take 222,000 square feet at Dock72.

“The tenant pool is not that deep. It’s not there yet,” Zev Holzman, a senior managing director at Savills Studley told Bloomberg.

At the moment, companies don’t necessarily have a big incentive to relocate to Brooklyn. Manhattan’s market is softening, and employees from northern Manhattan and New Jersey aren’t necessarily keen on a longer commute.

Large tech companies like Google, Spotify and Facebook have largely stuck to Manhattan. The city has taken some steps to lure companies to Brooklyn. A proposed zoning change aims to encourage garment manufacturers to move to Sunset Park. [Bloomberg] — Kathryn Brenzel