BJH Advisors Gowanus Commercial Market Report March 2017 Key Findings • Inventory: The inventory of industrial space in Gowanus has declined in the past 10 years, which is consistent with the borough. At the same time, the inventory of office space increased due to the repositioning of industrial space to office space. This trend is expected to continue in the future, which would reduce the supply of artist workspace. • Rent: Commercial rents, particularly for industrial and retail uses, have been increasing in Gowanus, driven by speculation about a potential rezoning. In fact, retail rents have increased by nearly 200% since 2008. Although CoStar indicates office rents are approximately $27 per square foot (PSF), anecdotal evidence indicates new office space in Gowanus is renting for $40 PSF. • Vacancy: Vacancy for each commercial use in Gowanus is extremely low, and lower than the average vacancy for commercial uses in Brooklyn overall. Commercial Real Estate Market Indicators Indicators Gowanus Brooklyn Industrial Office Retail Industrial Office Retail Inventory (SF) 4,673,943 594,391 1,016,746 91,255,697 48,677,569 89,929,718 % Change in Inventory (2007 – 2017) -7% 35% 4% -7% 1% 3% Median Asking Rent (PSF) $31 $27 $54 $24 $39 $45 % Change in Median Rent (2007 – 2017) 94% 13%* 180%** 124% 34% 28% Vacancy 2.8% 2.3% 0.4% 5% 7.1% 2.8% 10 Year Net Absorption (SF) -379,863 190,930 100,278 -5,150,296 374,546 8,562,625 *2009 – 2017; ** 2008 – 2017 Source: CoStar, 2017
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BJH Advisors
Gowanus Commercial Market Report
March 2017
Key Findings• Inventory: The inventory of industrial space in
Gowanus has declined in the past 10 years, which is consistent with the borough. At the same time, the inventory of office space increased due to the repositioning of industrial space to office space. This trend is expected to continue in the future, which would reduce the supply of artist workspace.
• Rent: Commercial rents, particularly for industrial and retail uses, have been increasing in Gowanus, driven by speculation about a potential rezoning. In fact, retail rents have increased by nearly 200% since 2008. Although CoStar indicates office rents are approximately $27 per square foot (PSF), anecdotal evidence indicates new office space in Gowanus is renting for $40 PSF.
• Vacancy: Vacancy for each commercial use in Gowanus is extremely low, and lower than the average vacancy for commercial uses in Brooklyn overall.
Gowanus is a neighborhood in the New York City borough of Brooklyn, within the South Brooklyn area. The neighborhoodis part of Brooklyn Community Board 6. Wikipedia
Gowanus is a neighborhood in the New York City borough of Brooklyn, within the South Brooklyn area. The neighborhoodis part of Brooklyn Community Board 6. Wikipedia
Key Findings• Inventory: The supply of commercial space in
Stapleton is relatively small and has remained flat over the past decade, similar to Staten Island overall. However, the large residential development pipeline, access to public transit, and proximity to the waterfront is expected to spur commercial uses and investment in the future.
• Rent: Commercial rents have experienced robust growth in Stapleton with industrial rents experiencing the highest rate of growth, similar to commercial trends in Staten Island overall.
• Vacancy: Industrial and office vacancy remain low. Retail vacancy doubled in 2016 with the delivery of a 16,000 SF development. However, retail vacancy has traditionally vacillated between 6 and 9 percent.
Jamaica is a middle-class neighborhood in the New York City borough of Queens. The neighborhood is part of Queens
Community Board 12, which also includes Hollis, St. Albans, Spring�eld Gardens, Baisley ... Wikipedia
Population: 217,000 (2010)
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Jamaica
BJH Advisors
Jamaica Commercial Market Report
March, 2017
Key Findings• Inventory: Jamaica’s overall inventory of
commercial space has remained steady. Portions of the study area contain an industrial business zone, which is likely to continue to preserve industrial space in the future.
• Rent: Median asking rents, particularly for office and retail, have surged as Jamaica has leveraged its robust public transportation and unmet retail demand to spur investments and attract new office and retail tenants. There is significant variety in retail rents throughout Jamaica, with prime locations exceeding rent of $100 per square foot as compared to $30 per square foot on side streets.
• Vacancy: Commercial vacancy in Jamaica remains low although there is a surge of new residential, hotel, and retail developments in the pipeline which may result in an increase in vacancy rates over the short term as the market absorbs the space.
Port Morris/Mott Haven MultifamilyResidential Market ReportMarch, 2017
Key Findings• Inventory: Since 2007, the inventory of
commercial space has remained relatively flat. The vast majority of commercial space is industrial, due to the Port Morris industrial business zone. Office inventory has increased slightly due to the repositioning of industrial properties. For example, properties that were once piano factories are being repositioned for creative uses.
• Rent: Industrial rents have increased due to low vacancy and high demand. Office rents have experienced modest growth, particularly when compared to the Bronx overall. Retail rents have decreased 19 percent since 2007, although supply is limited.
• Vacancy: Industrial and retail vacancy is low. Office vacancy remains high and could increase due to an office development pipeline along the western border of Port Morris.
% Change in Median Rent(2007 – 2017) 57% 17% -19% 63% 188% -4%
Vacancy 2.4% 37.3% 7.2% 3.9% 10.5% 4.8%
10 Year Net Absorption(SF) 270,695 -132,499 -1,953 -1,108,419 1,602,621 4,051,124
Source: CoStar, 2017
Key Findings• Inventory: The supply of commercial space in
Inwood is relatively small. A proposed rezoning aimed at catalyzing residential development may spur an increase in retail space (within the ground floor of new residential properties) in the future.
• Rent: Commercial rents have been increasing, particularly for retail. Retail rents will continue to increase if the rezoning moves ahead and new residential units bring more customers. Office rents have also grown, but at a slower rate than overall borough growth for office rents.
• Vacancy: Vacancy in Inwood remains low, particularly for office uses.
