2016 brooklyn retail report (spreads)

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CPEX Real Estate is pleased to present our sev-

enth annual Brooklyn Retail Report, a comprehen-

sive survey of the primary, secondary, and tertiary

retail corridors throughout the borough.

After an 80% increase in the number of notable re-

tail corridors from 2013 to 2015, our 2016 Brooklyn

Retail Report found that Brooklyn retail has broken

into the top ten nationally in terms of pricing (ex-

cluding New York, New York as an outlier in the

national retail market). With retailers flocking to al-

ready established corridors this past year, pricing

in prevalent retail areas such as the Fulton Street

Mall and Bedford Avenue has increased dramatical-

ly. As a result, Brooklyn retail has reached levels on

par with the top retail destinations in Chicago, San

Francisco, and Miami. With retailers like Saks Off

Fifth, Wegmans, and Nike (among others) entering

the Brooklyn market, this outer borough contin-

ues its emergence on the national retail scene.

The 2016 CPEX Brooklyn Retail Report is compiled

by the CPEX Brooklyn Retail Leasing Team, with

assistance from our research and graphics depart-

ments. Careful attention has been paid to summa-

rize the current market conditions. The pricing for

each corridor provided is an estimate and a snap-

shot of the current period, based on the data col-

lected from internal and external sources, includ-

ing: CPEX completed transactions, market reports

from our in-house research studies, and various

data resources (Brownstoner.com; City-Data; City-

Realty; Commercial Observer; Cushman & Wake-

field; Downtown Brooklyn Partnership; NYC MTA;

New York Daily News; StreetEasy; The Real Deal;

U.S. Census Bureau; and the Wall Street Journal).

Timothy D. King Ryan Condren George Danut Keat ChewManaging Partner Managing Director Associate Director Associate [email protected] [email protected] [email protected] [email protected] (718) 687-4210 (718) 687-4212 (718) 687-4220 (718) 687-4209

Considering the dynamics of the New York Retail Market and the

overall economic conditions, these pricing levels are not only subject

to change, but will most likely fluctuate as various market conditions,

supply, demand, as well as economic indicators change from quarter

to quarter. While the actual pricing levels may change in the coming

months, this report can be an important tool for leasing comparisons,

for calculating percent changes across neighborhoods and boroughs,

and for quantifying Net Operating Income levels in estimating cap

rates and performing property valuations. This report can assist prop-

erty owners and business owners with a current and up-to-date syn-

opsis of their market place.

For retail landlords and tenants with specific site analysis require-

ments, please note that each and every property provides unique

characteristics which affect its potential lease pricing levels. Char-

acteristics such as location, build-out, neighboring tenants, available

transportation, street conditions, residential density, traffic, etc., all

have an important impact on contracted leasing rates. As the eco-

nomic market impacts the retail industry, we at CPEX will continue to

monitor such changes and make them available to our clients. Please

call us if you have any questions regarding this report, if you require

further information pertaining to your real estate or business, or if you

are interested in any retail opportunities we currently have available.INT

RO

DU

CT

ION

The CPEX Brooklyn Retail Leasing Team

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2016 BROOKLYN RETAIL CORRIDOR MAP

JAMAIC

A BAY

18

22

28

25

26

54

55

82

100

31

65 99

53

21

23

39

68

86

43

48

41 42

52

69

90

92

44

58

113

115117

96

3840

37

27

17

20

24

8887

85

33

35

73

72

83 3657 78

8081

71

2

3

12

13

4568

11

50

9

77

79

84

89

5

610

7

16 7015

19

49

66

67

47

97

101

102

104

106

105

107

108

109

110

112

120119

121

30

94

95

103

91116

118

114

46

2960

61

62

32

98

59

1 15

5175 76

74

63

64

34

111 45

93

N

EW

S$35 - $49 PSF$50 - $64 PSF

$65 - $79 PSF

$80 - $99 PSF

$100 - $149 PSF

$150 - $199 PSF

$200 - $250 PSF

$250 - $300 PSF

$300+ PSF

41 Corridors from $35 - $49 PSF






1 Corridor from $200 - $250 PSF

1 Corridor from $250 - $300 PSF

1 Corridor from $300+ PSF

PPSF Range Total Corridors Per Price Range

2016 RETAIL CORRIDORS

2XZOOM

HighlightedNeighborhoodsBoerum HillBrooklyn HeightsCarroll GardensCobble HillDowntown BrooklynGowanus Park Slope

Retail Density34 corridors in2.69 square miles

Brooklyns Michelin-starred restaurants have tripled in number since 2014

28%of Brooklynsnotable corridors

concentratedin just 3.7%of Brooklyns71 square mile land area

2016 BROOKLYN RETAIL CORRIDORS1 3rd Ave Bay Ridge Ave 97th Street

2 3rd Ave Atlantic Ave Union St

3 3rd Ave Union St Prospect Ave

4 4th Ave Atlantic Ave Sackett St

5 4th Ave Sackett St 6th St

6 4th Ave 6th St 18th St

7 5th Ave Flatbush Ave Bergen Street

8 5th Ave Bergen Street Berkeley St/Sackett St

9 5th Ave Berkeley St/Sackett St 3rd St

10 5th Ave 3rd St 12th St


12 5th Ave 17th St 23rd St


14 5th Ave Senator St 97th Street

15 7th Ave Lincoln Pl 1st St

16 7th Ave 1st St 9th St


18 8th Ave 53rd St 61st St

19 9th St 4th Ave 6th Ave


21 13th Ave 75th St 82nd St

22 18th Ave 61st St Bay Ridge Pkwy

23 86th St 23rd Ave Stillwell Ave

24 86th St 4th Ave Fort Hamilton Pkwy

25 86th St 18th Ave 20th Ave

26 86th St Bay Pkwy 23rd Ave

27 86th St (East Side) 20th Ave Bay Pkwy

28 86th St (West Side) 20th Ave Bay Pkwy

29 Atlantic Ave Clinton St Smith St

30 Atlantic Ave Smith St 4th Ave

31 Avenue J Coney Island Ave East 15th St

32 Avenue U Coney Island Ave Haring St

33 Bedford Ave North 8th St North 3rd St

34 Bedford Ave Metropolitan Ave South 5th St

35 Bedford Ave DeKalb Ave Fulton Street

36 Berry St North 8th St North 3rd St

37 Brighton Beach Ave Brighton 4th St Coney Island Ave

38 Broadway Kent Ave Roebling St

39 Broadway Flushing Ave Park St

40 Bushwick Avenue Metropolitan Ave Johnson Ave

41 Church Ave East 7th St Argyle Rd

42 Church Ave Buckingham Rd Ocean Ave

43 Church Ave Ocean Ave Bedford Ave

44 Church Ave East 49th St East 53rd St

45 Classon Ave Atlantic Ave Eastern Pkwy

46 Columbia St DeGraw St President St

47 Coney Island Ave Avenue J Cortelyou Rd

48 Cortelyou Rd Coney Island Ave East 16th St

49 Court St Montague St Atlantic Ave

50 Court St Atlantic Ave Bergen St

51 Court St Bergen St Baltic St

52 Court St Baltic St 4th Pl

53 Cropsey Ave Belt Pkwy Neptune Ave

54 Dekalb Ave Cumberland St Clinton Ave

55 Dekalb Ave Flatbush Ave Fort Greene Pl

56 Douglass St Nevins St 4th Ave

57 Driggs Avenue North 11th St Grand St

58 Eastern Pkwy Schenectady Ave Utica Ave

59 Emmons Ave Nostrand Ave Ocean Ave

60 Flatbush Ave Willoughby St Livingston St

61 Flatbush Ave Atlantic Ave St. Marks Ave

62 Flatbush Ave St. Marks Ave 8th Ave

63 Flatbush Ave Empire Blvd Parkside Ave

64 Flatbush Ave Linden Blvd Cortelyou Rd

65 Flatbush Ave - The Junction Foster Ave Avenue I

66 Flatbush Ave Avenue L Avenue P

67 Flatbush Ave Avenue R Avenue V

68 Flushing Avenue Wilson Ave Wyckoff Ave

69 Franklin Ave St. Marks Ave St. Johns Pl

70 Franklin Ave St. Johns Pl Eastern Pkwy

71 Franklin St Eagle St Milton St

72 Front/Water/Plymouth/Jay St - -

73 Fulton Street Mall Adams St Flatbush Avenue

74 Fulton St Flatbush Ave Washington Ave

75 Fulton St Washington Ave Bedford Ave

76 Fulton St Bedford Ave Brooklyn Ave

77 Gateway Center - -

78 Graham Ave Skillman Ave Grand St

79 Graham Ave Boerum St Flushing Ave

80 Grand St Kent Ave Bushwick Ave

81 Havemeyer St Grand St Broadway

82 Henry St Middagh St Clark Street

83 Kent Ave North 7th St North 3rd St

84 Kings Highway Coney Island Ave East 17th St

85 Knickerbocker Ave DeKalb Ave Menahan St

86 Lewis Avenue Hancock St Fulton St

87 Manhattan Ave Freeman St Greenpoint Ave

88 Manhattan Ave Greenpoint Ave Nassau Ave

89 Metropolitan Ave Berry St Graham Ave

90 Montague St Hicks St Court St

91 Myrtle Ave Carlton Ave Steuben St

92 North 6th St Kent Ave Bedford Ave

93 North 4th St Kent Ave Bedford Ave

94 Nassau Ave Dobbin St Russell St

95 Nostrand Ave St. Marks Ave Eastern Pkwy

96 Nostrand Ave Eastern Pkwy Empire Blvd

97 Nostrand Ave Avenue D Foster Ave

98 Nostrand Ave Avenue T Belt Pkwy

99 Nostrand Ave - The Junction Farragut Rd Avenue I

100 Pennsylvania Ave Linden Blvd Flatlands Ave

101 Pitkin Ave East New York Ave Mother Gaston Blvd

102 Prospect Park West 15th St 17th St

103 Ralph Ave Broadway Decatur St

104 Ralph Ave Flatlands Ave Avenue K

105 Rockaway Pkwy Farragut Rd Flatlands Ave

106 Rockaway Pkwy Seaview Ave Belt Pkwy

107 Sheepshead Bay Rd Avenue Z Voorhies Ave

108 Smith St Atlantic Ave Union St

109 Smith St Union St 2nd Pl

110 Union Ave Metropolitan Ave Grand St

111 Union St Nevins St 4th Ave

112 Utica Ave St. Johns Pl Union St

113 Utica Ave Linden Blvd Snyder Ave

114 Van Brunt St Commerce St Reed St

115 Vanderbilt Ave Atlantic Ave Park Pl

116 Washington Ave Flushing Ave Park Ave

117 Washington Ave Pacific St Eastern Pkwy

118 Willoughby St Boerum Pl Flatbush Ave

119 Wilson Ave Flushing Ave Dekalb Ave

120 Wyckoff Ave Flushing Ave Myrtle Ave

121 Wythe Ave North 12th St North 3rd St

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*Excluding New York, New York

Jay-Z has rapped about his fame from Brooklyn to Dakota. Brooklyn retail? Also ranks among the best, from coast to coast.

LA BK MIA DCSF CHI

BROOKLYN VS. USA

From Brooklyn to Dakota:3 of top 10 U.S. retail corridors are in Brooklyn

Brooklyns 2.6M residents would form Americas4th most populous city

# City Location*Excluding New York, New York

Rent as of June 2015 (PPSF)

1 Los Angeles Rodeo Drive (Beverly Hills) $800

2 San Francisco Union Square $650

3 Chicago North Michigan Avenue $525

4 San Francisco Post Street $495

5 Brooklyn Williamsburg: Bedford Avenue (North 8th St - Metropolitan Ave) $350

6 Chicago East Oak Street $340

7 Miami Lincoln Road $325

8 Brooklyn Downtown Brooklyn: Fulton Street Mall (Adams St - Flatbush Ave) $250

9 Washington, D.C. Penn Quarter $220

10 Brooklyn Downtown Brooklyn: Court Street (Montague St - Atlantic Ave) $200

BROOKLYN WELCOMED IN 2015:

5 Brooklyn Williamsburg: Bedford Avenue (North 8th St - Metropolitan Ave) $350

8 Brooklyn Downtown Brooklyn: Fulton Street Mall (Adams St - Flatbush Ave) $250

10 Brooklyn Downtown Brooklyn: Court Street (Montague St - Atlantic Ave) $200

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With an influx of new housing options and residents over the past decade, several neighborhoods have, in

recent years, surged in popularity (not to mention pric-

ing) and are slowly forging a new identity. As expected,

and as any retail connoisseur will vouch, the tenant mix

has also changed or is in the process of doing so as

retailers seek to be part of the transformation of these

communities. However, even as more and more farm

to table eateries, chic cafes, boutique storefronts, and

THE MORE THINGS CHANGE, THE MORE THEY STAY THE SAME

Five Neighborhoods Undergoing ResidentialGrowth While Retail Rents Stay Status Quo

fitness concepts offer new amenities along Manhattan Avenue in Greenpoint or on Park Slopes 5th Avenue,

the average price per square foot remains constant. In-

deed, the main change is in the profile of the retailer, not the tenants rental rates. Rather than undergoing a

complete retail reinvention in conjunction with the rap-

id residential growth, these corridors that are and have

been established retail destinations are experiencing a

simple retail reshuffling.

GreenpointManhattan Avenue(Freeman Street to Nassau Avenue)

Cobble/Boerum HillAtlantic Avenue(Clinton Street to 4th Avenue)

BushwickKnickerbocker Avenue

(DeKalb Avenue to Menahan Street)

Bed-StuyFulton Street

(Washington Avenue to Brooklyn Avenue)

Park Slope5th Avenue

(9th Street to 16th Street)

1 2 3

54

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Montague Street (Court St. to Hicks St.) Although it is home to nine banks in the one block

stretch between Court and Clinton Streets, Mon-

tague Street offers plenty of variety of retail op-

tions. The street was the first Brooklyn stop for tenants such as Banana Republic, Ann Taylor Loft,

Le Pain Quotidien and MAC Cosmetics, and it con-

tinues to thrive and attract retailers such as Kiehls

and popular Manhattan brunch eatery Friend of a

Farmer. In addition, the reopening of the historic

279-room Hotel Bossert is expected to further en-

hance the retail and restaurant revenues on this

notable Brooklyn corridor.

Flatbush Avenue (Atlantic Ave. to 8th Ave.) Adidas, Shake Shack, Doughnut Plant and Parm

are some of the operators that set up shop on this

corridor recently in order to take advantage of

the Barclays Center crowds. But Flatbush Avenue

is more than just a landing spot for sports fans or

concert goers. BKLYN Larder, Morgans BBQ, and

Frannys are well-established operations that cater

mainly to the Park Slope and Prospect Park com-

munities in addition to the rest of Brooklyn. As if

thats not enough, popular Brooklyn grocer Union

Market and SoulCycle have also recently signed

leases on the corridor.

The Flatbush JunctionThe remarkable success of the Triangle Junction

with one of the countrys largest Target stores,

Home Goods, Mens Wearhouse, and Davids Bridal,

among many other regional and national retailers,

has enticed an international brand such as Nike to

open its flagship store in this already established retail destination. Along with its proximity to the

2 and 5 subway lines, the overall growth and pro-

posed expansion of Brooklyn College with its

18,000 students, faculty, and staff will only further

enhance the appeal of this retail hub.

NOTABLE CORRIDORS

1

2

3

2015 LEASES

Bossert Hotel - 98 Montague Street

Nikes first Brooklyn location - 2236 Nostrand Avenue

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4th Avenue (Sackett St. to 9th St.) With a flurry of new development projects, 4th Avenue has also seen an influx of new retail ten-ants looking to capitalize on the transforming

corridor. Blink Fitness, Gymboree, UFC Gym,

and Red Wing all opened shop on 4th Avenue,

and the CPEX Brooklyn Retail Leasing Team ne-

gotiated a lease with Brooklyn Drones Inc., the

first drone retailer in all of New York City.

Grand Street (Kent Ave. to Marcy Ave.) This section of Grand Street in Williamsburg al-

ready had an eclectic mix of retail options, an-

chored by the St. Mazie Bar & Supper Club at its

eastern end and Devocin at the opposite end. The

corridor is also home to Williamsburg Cinemas,

Bozu, Slat + Charcoal, Cucina and Tavola, and the

popular Brooklyn Running Co. In 2015, it solidified its status as a nicely curated retail destination with

new tenants Rudys Barbershop, The Bellows Bar

& Kitchen, and The Four Horsemen, among others.

Vanderbilt Avenue (Atlantic Ave. to Park Pl.)Already an established neighborhood retail corri-

dor with popular foodie destinations such as The

Vanderbilt, Milk Bar, and the original Ample Hills

Creamery, it has recently added culinary options

such as Cooklyn, The Little Cupcake Bakeshop,

and trendy Chuko Ramen and its sister opera-

tion Bar Chuko located across the street. With

Pacific Park and its over 6,000 new residential units set to open soon, Vanderbilt Avenue will

only continue its growth as one of Brooklyns

go-to retail corridors.

DEVELOPING CORRIDORS

1

2

3

Rendering of 275 4th Avenue

Rendering of Pacific Park

TWENTY+LEASES IN 2014 & 2015

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THE CPEX BROOKLYNRETAIL LEASING TEAM

Timothy D. KingManaging 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 firms business line divisions and business devel-

opment. During his forty-plus

years in the real estate indus-

try, he has been instrumental

in attracting numerous national

retailers to the outer boroughs.

This includes Brooklyns largest

retail lease of 2014, in which

Bed Bath & Beyond and three

of its subsidiaries committed

to over 100,000 square feet at

850 3rd Avenue in Sunset Park,

and the first outer borough lo-cation for Saks OFF 5TH, also

at 850 3rd Avenue. Under his

direction, the Brooklyn Retail

Leasing Team has become a

powerhouse of performance

and the firm of choice for land-lords, tenants, and tenant rep-

resentation brokers.

Ryan CondrenManaging Director

Ryan Condren is the Managing

Director of the Brooklyn Retail

Leasing Team, having joined

CPEX as an Associate Director

in 2008. His achievements in re-

tail leasing have gained him rec-

ognition as an Emerging Leader

in Retail by Real Estate Forum

magazine and a three-time Co-

Star Power Broker (2011, 2012,

2014). He has also been honored

by the Home Reporter and the

Brooklyn Spectator as a recipi-

ent of the 2012 Brooklyn Rising

Stars Award. With Condren as

one of its leaders, the Brooklyn

Retail Leasing Team has been

responsible for the completion

of over 100 lease transactions

totaling more than 550,000

square feet of retail space with

an aggregate lease value of over

$450 million. In the course of his

career, Condren has worked

with an impressive collection

of landlords, developers, and

institutions in achieving their

retail leasing objectives, includ-

ing Jamestown Properties, the

Lefrak Organization, the Naftali

Group, Rockrose, the Quinlan

Group, and Hidrock Realty.

George DanutAssociate Director

George Danut has been a part

of the CPEX Brooklyn Retail

Leasing Team since September

2012. As an Associate Director,

he supports the Retail Leasing

Team by valuating leases, pro-

viding market research, prepar-

ing marketing packages, and ex-

ecuting the lease of properties.

Danut has assisted in the lease

of over 60 retail spaces with

such notable tenants as Bed

Bath & Beyond, Harbor Freight,

LePort Schools, Gymboree Play

& Music, Bar Method, and Ben-

efit Cosmetics. Danut received his Bachelor of Arts in Political

Science from Columbia Univer-

sity in 2009. He was a member

of the Columbia University Eco-

nomics Society and the Colum-

bia University Romanian Club.

Danut currently resides in the

Park Slope section of Brooklyn.

He is fluent in Romanian.

Keat ChewAssociate

Keat Chew joined the Brooklyn

Retail Leasing Team in May 2015.

Raised in a Malaysian household,

he speaks Mandarin, Cantonese,

and Hakka to bring Chinese flu-ency to the company. Prior to

joining the team, Chew was an

Associate on the Mixed-Use In-

vestment Sales Team, follow-

ing his completion of the CPEX

Sales Training Program in 2014.

During his time with the Mixed-

Use Team, he completed nine

transactions totaling more than

90,000 square feet, with an ag-

gregate sales value of over $35

million. In the past year, Chew

was actively involved in over 10

leases with tenants such as Saks

OFF 5TH, Marine Layer, and

iLoveKickboxing. Chew graduat-

ed from Lehigh University with a

Bachelor of Science in Business

and Economics, having majored

in Finance and Business Infor-

mation Systems with a concen-

tration on real estate and engi-

neering. As an undergraduate,

he co-founded the Psi chapter of

the Chi Phi Fraternity.

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NOTABLE TRANSACTIONS

850 3rd Avenue

1 Brooklyn Bridge

341 Eastern Parkway

365 4th Avenue

666 Greenwich Street

125 5th Avenue

195 Berry Street

168 Court Street

850 3rd Avenue

257-267 Pacific Street

240 Atlantic Avenue

71 Hoyt Street

Completed by the CPEX Retail Leasing Team

PREPARED BY THE CPEX BROOKLYN RETAIL LEASING TEAM

81 WILLOUGHBY STREET, 8TH FLOOR | BROOKLYN, NY | 11201 | 718.935.1800

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