1. travel
2. hotels

INTRODUCTION
CPEX Real Estate is pleased to present our an-
Crain’s New York Business; Downtown Brooklyn Partnership;
nual Brooklyn Retail Report for 2015, a compre-
NYC MTA; New York Daily News; StreetEasy; The Real Deal; U.S.
hensive survey of the primary, secondary, and
Census Bureau; and the Wall Street Journal).
tertiary retail corridors throughout the borough.
Considering the dynamics of the Brooklyn retail market and the
The 2015 CPEX Brooklyn Retail Report is com-
overall economic conditions, these pricing levels are not only sub-
piled by the CPEX Retail Leasing Team, with
ject to change, but will most likely fluctuate as various market con-
assistance from our research and graphics
ditions, supply, demand, as well as economic indicators change
departments. Once again, 2015 reveals a tale
from quarter to quarter. While the actual pricing levels may change
of two Brooklyns; Southern Brooklyn didn’t
in the coming months, this report can be an important tool for leas-
undergo as much expansion or appreciation,
ing comparisons, for calculating percent changes across neighbor-
while north of Prospect Park saw a significant
hoods and boroughs, and for quantifying Net Operating Income
spike in density. In this latest version, we have
levels in estimating cap rates and performing property valuations.
identified 27 additional retail corridors from
This report can assist property owners and business owners with a
the previous year’s report to account for the
current and up-to-date synopsis of their market place.
rapidly expanding retail scene in flourishing
neighborhoods like Park Slope, Williamsburg,
and Crown Heights – home to the most corridors in the borough. This brings the total
number of significant retail arteries in the
borough to 121, nearly double the total
from just two years ago. From 2014, six
corridors expanded, four thoroughfares were
divided to account for certain sections commanding higher rents, and 15 saw enough of
an increase in pricing to jump to the next tier in
average price per square foot.
For retail landlords and tenants with specific site analysis requirements, please note that each and every property provides unique
Careful attention has been paid to summarize
characteristics which affect its potential lease pricing levels. Char-
the current market conditions. The pricing for
acteristics such as location, size, build-out, neighboring tenants,
each corridor provided is an estimate and a
available transportation, street conditions, residential density,
snapshot of the current period, based on the
traffic, etc., all have an important impact on contracted leasing
data collected from internal and external sourc-
rates. As the economic market impacts the retail industry, we
es, including: CPEX completed transactions,
at CPEX will continue to monitor such changes and make them
market reports from our in-house research, ap-
available to our clients. Please call us if you have any questions
praisers, and various data resources (Brown-
regarding this report or if you require further information pertain-
stoner.com; Commercial Observer; CoStar;
ing to your real estate or business.
The CPEX New York 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
WWW.CPEXRE.COM
2015 BROOKLYN RETAIL CORRIDOR MAP
TOP THREE
NEIGHBORHOODS
67 CORRIDORS
IN 2013
RETAIL
DENSITY
15 13
PARK SLOPE
CORRIDORS
WILLIAMSBURG
7
CROWN HEIGHTS
92
83
26 33
57
90
118
49
91
55
12
80
116
42
86
58
112
101
100
44
64
77
106
97
47
24
85
103
43
20
65
105
99
104
31
21
120
119
113
48
15
S
63
102
41
18
68
39
17
13
1
40
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
11
E
78
89
79
82
114
W
81
72
46
94
35 110
38
CORRIDORS
88
121
93
CORRIDORS
N
87
71
66
22
25
67
84
27
28
37
23
32
98
107
59
53
67 CORRIDORS
IN 2013
80%
INCREASE IN AMOUNT
OF CORRIDORS
121 CORRIDORS
IN 2015
36
2015 RETAIL
PPSF Range
$35 - $49 PSF
$50 - $64 PSF
$65 - $79 PSF
$80 - $99 PSF
$100 - $149 PSF
$150 - $199 PSF
$200 - $250 PSF
$250+ PSF
Total Corridors Per Price Range
42 Corridors from $35 - $49 PSF
37 Corridors from $50 - $64 PSF
17 Corridors from $65 - $79 PSF
12 Corridors from $80 - $99 PSF
8 Corridors from $100 - $149 PSF
3 Corridors from $150 - $199 PSF
1 Corridor from $200 - $250 PSF
1 Corridor from $250+ PSF
BAY
JAMAICA
2013 FLASHBACK
Total Corridors Per Price Range
32 Corridors from $35 - $49 PSF
15 Corridors from $50 - $64 PSF
8 Corridors from $65 - $79 PSF
4 Corridors from $80 - $99 PSF
5 Corridors from $100 - $124 PSF
3 Corridors from $150+ PSF
2015 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
Union 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
35
Bedford Ave
Metropolitan Ave
South 5th St
94
Nassau Ave
Dobbin St
Russell St
34
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
Blatic 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
NOTABLE RETAIL CORRIDORS
1
86th Street
Union Street
–
Historically, the stretch of 86th Street from 4th Avenue
to Fort Hamilton Parkway has been one of the top retail
locales in Southern Brooklyn. That has drawn prominent
retailers to the area, including recent lease signings by
Chipotle, Victoria’s Secret, and Panera Bread. In addition, Century 21’s expansion to 87th Street has brought
shoppers from outside the neighborhood, broadening the
customer base for all retailers in the area. An extra 40,000
square feet and a 280-car parking garage will do that!
(4TH AVE - FORT HAMILTON PKWY)
(ATLANTIC AVE - 2ND PL)
– It wasn’t
too long ago that Smith Street was known almost exclusively as “Restaurant Row.” Now, however, the Smith
Street landscape is changing. The mix of retailers is
quickly diversifying as national apparel and wearable
brands such as Lululemon Athletica, Intermix, SEE, Free
People, and Lucky Jeans join Smith Street’s signature
series of culinary delights.
Retail
SQUARE FEET OF
RECENT DIVERSIFICATION
BROOKLYN WELCOMED THESE TENANTS IN 2014
WWW.CPEXRE.COM
5
UNION STREET
SUBWAY STATION
2,058,555
N. 4th Street (KENT AVE - BEDFORD AVE) – As Bed-
ford Avenue in Williamsburg has become arguably one of
the best retail corridors in Brooklyn, its magnetism has led
retailers to the surrounding side streets just to be in proximity to this rapidly ascending retail destination. North 4th
Street was particularly poised to capitalize on Bedford Avenue’s success with its uniquely large floor plate, attracting recent tenants such as Whole Foods, Joe Fresh, New
York Sports Club, Blue Bottle, and Steven Alan Home.
This is the prime example of a side street that not so long
ago had zero retail traction, but is now incredibly one of
the more expensive blocks in the borough.
6
5th Avenue (SACKETT ST/BERKELEY ST - 3RD ST) –
5th Avenue in Park Slope, running from Sackett Street/
Berkeley Place to 3rd Street, has become a “Restaurant Row” in its own right. Grand Central Oyster Bar,
offshoot of the iconic seafood eatery at, you guessed
it, Grand Central, opened here last year, along with Two
Boots pizza, which also relocated from the same location. It’s also home to popular dining and drinking destinations such as al di la Trattoria (Brooklyn-born Italian
restaurant perennially recommended by the Michelin
guide), Calexico, Blue Ribbon Brooklyn, Naturo Ramen,
the punny Pork Slope, and many more.
RAPID TRANSFORMATION
NOT ON MAP
2015
Smith Street
605,000
an interdisciplinary gallery and reading room along the canal,
also serves as a cultural destination that boosts the number
of visitors to the Union Street retail scene.
ANNUAL RIDERSHIP
2013
3
ADDED
– Located
in the Gowanus, the section of Union Street that connects
Carroll Gardens to Park Slope has several noteworthy retailers, including Dinosaur BBQ, The Royal Palms Shuffleboard
Club, and Ample Hills Creamery, voted one of the top ten ice
cream parlors in the country. Union Street’s popularity is due
in large part to its proximity to the R train at Union Street and
4th Avenue and, similar to North 4th Street in Williamsburg,
its large floor plates. It also benefits from having the Holiday
Inn Express (115 rooms) and will soon add the Gowanus Inn
& Yard, an 82-room boutique hotel. The Proteus Gowanus,
(NEVINS ST - 4TH AVE)
NORTH 4TH STREET
way Center has super-sized into a one-stop shopping
experience in East New York. Indeed, with over 1.19
million square feet, the Gateway Center is one of
Brooklyn’s largest suburban-style retail developments
accessible at shoppers’ urban convenience. Phase 1
of the project brought in BJ’s Wholesale, Home Depot, Bed Bath & Beyond, Target, Best Buy, Staples,
Olive Garden, Boulder Creek Steakhouse, and others.
That success helped pave the way for Phase 2 tenants such as Bank of America, Nordstrom Rack, Buffalo Wild Wings, Sports Authority, TJ Maxx, Burlington
Coat Factory, Applebee’s, and JCPenney’s first ever
Brooklyn location.
2014 LEASES
PHASE II
2
Gateway Center (EAST NEW YORK) – The Gate-
4
$100-$149 PSF
AVERAGE
HOUSEHOLD
INCOME $150K
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MARKET FACTORS:
WHAT IS DRIVING RETAIL?
RESIDENTIAL
1 DEVELOPMENT
2
New permits in OFFICE
19,082 Brooklyn
new unit permits in brooklyn
have also seen a
almost
2X that of
manhattan 149%
over all the other
since 2013 brooklyn permits
outer boroughs
116% combined
vacancy rate
is 4.2%
Lowest in
united states
63,859
students
EDUCATION
3
universities, colleges, & seminaries
33
WWW.CPEXRE.COM
4 HOSPITALITY 50
21 more hotels in pipeline by 2017
bringing the total to 71, a 154%
existing hotels
with 4,272 rooms
since
2008
81% occupancy in brooklyn
16% above national average
TOURIST 5
ATTRACTIONS
prospect park
10M people visit every year
second only to central Park
second only to central Park
Brooklyn
Bridge
Spanning over 1.3 miles
hosts about 220 or more events per
year, an average of four per week
Starting this year it will be home to
One of the New York area’s most important entertainment and arts venues,
BAM provides a focus on avant-garde performance art and progressive
dance for both the local community and those from further afield.
of brooklyn waterfront
Mccarren
Park
35 acres of bustling activity
shared by locals and tourists
BAM
Over 550,000 people pass through its doors annually
WWW.CPEXRE.COM
TRANSFORMING RETAIL
Bedford-Stuyvesant
Bedford-Stuyvesant (Bed-Stuy) has been gaining in popularity and price over the past year. Demand from an influx of new residents (that infamous “G” word, gentrification) has caused average
property values to increase by 36% between October 2013 and October 2014. The spike in demand for Bed-Stuy residences has opened the door for a multitude of restaurants and cafés to,
well, open their doors throughout the neighborhood. According to a CPEX study of retail leases
signed in 2014 in Bed-Stuy, 33 new retail locations opened in the neighborhood in the past year,
28 of which were a restaurant, café, or bar. While not primed to be the next Williamsburg due to its
residential density, Bed-Stuy can expect more mature retail options to follow moving forward from
the culinary wave of 2014.
Industry City Area
Originally dubbed Bush Terminal at the turn of the 20th Century, Industry City has evolved from
a classic waterfront manufacturing, warehousing and distribution center into the “Soho of Sunset
Park,” according to a 2014 New York Times article. After falling into disuse and disrepair, the 16
building, six million square foot complex was taken over by Jamestown Properties and its associates in late 2013, and is now on the verge of a renaissance as a new age community for creative,
technological, and manufacturing use. Down the block at 850 3rd Avenue, CPEX represented the
landlord at Liberty View Industrial Plaza in welcoming Bed Bath & Beyond and three of its subsidiaries in the largest retail lease in all of Brooklyn for 2014, totaling approximately 120,000 square feet.
Their presence, along with the ever-changing, up-and-coming dynamics of Industry City, creates a
perfect storm for retail to take off in the surrounding area.
Extending Fulton Street Mall
The Fulton Street Mall has long been a focal point when it comes to Brooklyn retail, especially with
its recent makeover of the past few years that diversified its tenant mix. The extension of the Fulton
Street Mall – by Brooklyn Heights Plaza to the east and City Point to the west – will only expedite
the growth of the area’s retail. Both bookends of the newly lengthened Mall have signed significant
leases with major tenants: Neiman Last Call, Sephora, Its Sugar, Yogaworks, and Soul Cycle on the
eastern side, and Alamo Drafthouse, Century 21, and Target at the western end. As more of the
luxury residential towers in Downtown Brooklyn are built and occupied, more retailers will join the
new occupants on the Fulton Mall. And who knows? It may have to be lengthened again to keep
up with the demand for amenities in the area.
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CPEX NEW YORK
RETAIL LEASING TEAM
Timothy D. King
Managing Partner
Timothy D. King aligned with partner Brian Leary to found CPEX in 2008. In his role as
Managing Partner, Mr. King co-heads the firm’s business line divisions and business development. During his forty-plus years in real estate operations, he has been instrumental in attracting numerous national retailers to the outer boroughs. Under his direction,
the New York Retail Leasing Team has become a powerhouse of performance and the
firm of choice for landlords, tenants, and tenant representation brokers.
Ryan Condren
Managing Director
Ryan Condren was promoted to Managing Director of the New York Retail Leasing
Team in 2011 after joining CPEX as an Associate Director in 2008. His achievements in
retail leasing have gained him recognition as a two-time CoStar Power Broker (2011,
2012), and he was also honored in the Home Reporter and the Brooklyn Spectator
for earning the 2012 Brooklyn Rising Stars Award. With Mr. Condren as one of its
leaders, the New York Retail Leasing Team has been responsible for the completion
of over 100 lease transactions totaling more than 450,000 square feet of retail space
with an aggregate lease value of over $425 million.
George Danut
Associate Director
George Danut has been a part of the CPEX New York Retail Leasing Team since September 2012. As an Associate Director, he supports the New York Retail Leasing Team
by providing market research, valuating leases, preparing marketing packages, and
executing the lease of properties. Since the beginning of 2013, Mr. Danut has assisted
in the lease of over 48 retail spaces with such notable tenants as Harbor Freight, LePort
Schools, Duane Reade, Gymboree Play & Music, Bar Method, and Benefit Cosmetics.
WWW.CPEXRE.COM
PREPARED BY THE CPEX RETAIL LEASING TEAM
81 WILLOUGHBY STREET, 8TH FLOOR | BROOKLYN, NY | 11201 | 718.935.1800
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