Brooklyn Office Space Market Set to Boom
The Lockaway Self Storage Building in Brooklyn is typical of the warehouses and factories that could potentially be converted to office use. This 1890s warehouse, located across from The Brooklyn Navy Yards was originally a shoe factory and then a root beer bottling plant before being shut down years ago. According to Tucker Reed, president of the Downtown Brooklyn Partnership, this building among many others are ripe for conversion to office space.
The Brooklyn office space for rent availability rate (the space that is available now or scheduled to become available within 12 months) in Brooklyn has dropped to 7.8% at the end of June; average asking rents are $32.13, compared to $47.49 in Manhattan’s Midtown South.
Midtown South has very little affordable commercial space for creative companies in comparison with Brooklyn. Brooklyn’s selection of refurbished industrial buildings coupled with the borough’s lower rents make it an option worth considering for Manhattan business tenants.
Many of the employees of New York City’s tech sector already live in Brooklyn. Reducing commute times by acquiring space near their staff’s homes makes good business sense.
The housing market in Brooklyn has been improving for years. In fact the housing boom has been partially fueled by the boom in Manhattan’s tech sector. For many people there is now a “cool” factor to living in Brooklyn. And there could very well soon be a “cool” factor to working there.
Navy Yards, Downtown Brooklyn & Dumbo Home to Many Tech Firms
According to the Downtown Brooklyn Partnership, Brooklyn is already home to almost 10% of New York City’s tech and media companies. These firms tend to be concentrated in the ‘Tech Triangle”, the Navy Yard area, Dumbo and under the Manhattan Bridge.
For example, MakerBot Industries, LLC., a 3D printer developer recently signed a lease in Downtown Brooklyn for space at MetroTech Center.
Brooklyn Office Space for Rent: Commercial Real Estate Alternative to Manhattan?
That depends solely on the unique real estate needs of your business or organization. But if you are considering a possible relocation by your company to Brooklyn, keep the following in mind:
-Former industrial buildings that are retrofitted to office use tend to have very large floor plates. As a result, most available listings will be larger than 5,000 Square Feet. So if your company is in the market for only few thousand Square Feet, options in Brooklyn, or Queens for that matter will be limited. Brooklyn office space for rent offers wider options for tenants leasing large blocks of space.
-The former industrial buildings in Brooklyn were never built for traditional office use. No matter how they are retrofitted and upgraded they will never have the feel of a Class A office building in Manhattan. If you need a high level of amenities in your commercial space, signing an office lease in Manhattan may be a better choice. But if you are a tech or media company looking for a cool industrial space, Brooklyn office space for rent may be a great choice.
Contact Principal Broker, Alan Rosinsky at (212) 444-2241 to be shown Brooklyn office space for rent in Williamsburg, Downtown Brooklyn, Dumbo, MetroTech Center or any Brooklyn neighborhood.