Despite several openings and less exposure to pandemic-related downturns in tourism than Manhattan, Brooklyn was not safe from declining retail rents this summer.
Compared to last summer, asking rents fell in 11 of 17 retail corridors in the borough tracked by the Real Estate Board of New York, according to a new report.
Dumbo saw the largest year-over-year decline in retail asking rents, a 23 percent drop. Williamsburg’s Bedford Avenue between Grand Street and North 8th Street was a close second with a 21 percent decline.
“We continue to see the market adjust, creating new opportunities for both tenants and owners, as well as posing some challenges as we work to rebuild the City’s economy,” REBNY President James Whelan said in a statement.
Corridors with a strong residential base, such as Cobble Hill and Park Slope, indicated greater resilience. Retail properties in Park Slope’s 7th Ave corridor, for example, saw a 10 percent increase in average asking rent compared to last year. Bay Ridge led the way with a 32 percent year-over-year jump.
Brooklyn as a whole welcomed several new retail tenants throughout the summer. Among them were Sephora and Dave & Busters at Atlantic Terminal, Urban Market in Park Slope and the designer toy store My Plastic Heart in Greenpoint.
“Though retail prices hit a bottom very early in the year, the softening of prices over the past few years has allowed a lot of local operators to take prime high street space again, as landlords accept softer terms without rigid credit standards,” Peter Schubert, managing director of commercial leasing at TerraCRG, said in a statement. “Brooklyn-based retailers have really led the market back, reversing the trend of the last 10 years.”