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Dear Brooklyn Property Owners,
This month kicks off what we in the rental business refer to as “The Season.” With over 80% of leasing activity typically occurring between April and September, and 800+ applications already processed this year to date, we’re moving into high gear.
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That said, 2021 demands proactive optimism. As this month’s spotlight on pricing strategy and retail leasing suggest, our ability to “build back Brooklyn” — this summer’s theme here at the brokerage — depends on our coordinated efforts and synergy.
Renters and business owners are returning to Brooklyn, but their interdependence makes overall leasing velocity and momentum critical to neighborhood recovery and stable rental income. High quality retail attracts high quality tenants, and vice versa.
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As always, we encourage our landlords to ensure their properties are positioned for today’s market. Deliberate strategy and partnership will restore Brooklyn’s claim to being the hippest, most in-demand real estate nationwide.
Let’s keep it up!
Shawn Mullahy
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A snapshot of all currently advertised inventory in our core neighborhoods to help you understand how your units are positioned in the competitive landscape.
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Advertised Listings by Bedroom Count
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Bed-Stuy demonstrates notable absorption of 3 and 4 bedroom apartments since last month.
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Largest Shares of Advertised Listings in Brooklyn
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Our core neighborhoods once again comprise over 50% of all listed Brooklyn units, led by Williamsburg, where total units jumped by 26% MoM.
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Advertised Listings by Median Price
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Green and red highlights indicate relative MoM median price increases and decreases, respectively. The average increase is 8-10%, with shade variants indicating more or less.
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Here we address your top questions and concerns with numbers and real-time insights.
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The Trend:
Continued optimism about economic and social recovery across the city has encouraged landlords to reduce concessions from asking prices. Across most categories median pricing has jumped 8-10% since last month, reflecting the removal of 1 free month.
The Truth:
Here at the brokerage, we have seen most transactions close at discounted offer prices, often adding the free month back into the equation.
Moreover, digging into the data reveals that Bed-Stuy 2BR and 3BR prices jumped just 4% this month – half the increase recorded in other neighborhoods, suggesting that this submarket continued to offer 2-week concessions, while others removed the concession entirely. Notably, the total units on market in those categories dropped close to 10% this month, while rising across nearly all other categories.
The Takeaway:
High pricing that begs offers may appear to offer advantages, but ultimately jeopardizes transactions. Whether a higher starting price simply discourages renter interest, or the renter/agent/landlord negotiation fails, it’s clear that even modest advertised concessions are still the most effective way to fill vacancies quickly in today’s market.
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The future of office space may still be up in the air, but that doesn’t mean people want to stay home. Jeff Goncalves, Director of the MySpace commercial division, MCRE, offers a glimpse into recent deals in Brooklyn and the promise they hold.
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“If You Build it, They Will Come…”
Nearly a third of all small businesses in NYC closed as a result of the pandemic. Neighborhoods like Bushwick that stake their reputation on diverse, vibrant retail felt the reverberations across asset classes.
In an early vote of confidence in neighborhood recovery, seasoned entrepreneurs and operators quickly absorbed the rare surplus of 2nd generation spaces, while the next wave of recovery will be driven by landlords working together with potential tenants to develop white box spaces into the restaurants, bars, yoga studios, and shops renters seek.
Landlords must view potential retail tenants as partners in rebuilding our neighborhoods. Upfront concessions and flexible terms will help these new business owners bet on Brooklyn again.
Betting on Bushwick
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1 Knickerbocker Avenue
4600 SF | $39.13 | 10yr
Paloma’s BK
Owner Fabiola Ruela already operates Mexican restaurant Paloma’s in Ridgewood. Encouraged by the success of that take-out style location…continue reading
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2 Knickerbocker Avenue
5000SF | $67.20 | 10yr
Rebel Garden and Cafe
Principal owner Matt Shendell is the founder of “The Ainsworth”, which has grown to 7 locations nationwide. With Bushwick’s surge in luxury development… continue reading
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105 Wilson Avenue
2200 SF | $27.27 | 10yr
Fukurou
Veteran restaurant owner Thalin Mabumrung sold his Manhattan-based “Gong Modern Thai” and chose to follow his migrating customer-base to Bushwick…continue reading
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942 Flushing Avenue
2800 SF | $47.14 | 10yr
Name: TBD
Citing the post-pandemic opportunity, a group led by Matthew Nash and Nelson Merlin — 10-year industry professionals, but first time restaurant operators … continue reading
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MCRE, a division of MySpace NYC, is a strategic partnership between the former M Properties Group and MySpace NYC Commercial.
Jeff Goncalves has been involved with hundreds of retail, office and industrial leases since 2015, primarily in the Brooklyn neighborhoods of Williamsburg, Bushwick, Bed-Stuy, Crown Heights and Flatbush.
mcre.nyc | jeff@myspacenyc.com | 413.454.7782
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We’re proud to represent flagship projects across Brooklyn. At the same time, our market expertise and proprietary analytical tools allow us to find the right angle – the right brand, promotion, and pricing – to successfully lease every Brooklyn property.
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The Building:
1209 DeKalb Ave is a 127 unit residential building in Bushwick. Its snazzy lobby, roof-deck, courtyard, and shared spaces made it a premium product when it was built in 2012. But, game-changing neighbors like the Denizen, Rhinegold, The Strand and others, with in-house wellness consultants and classes, beer-tastings, rock-climbing gyms, and more, raised the bar for luxury living in Bushwick. Leveraging market expertise and proprietary pricing tools, our team was able to highlight the building strengths and retain existing tenants as the pandemic encouraged yet another shift in renter demand.
Our Work:
In the first few months of 2021, the building was faced with the challenge of retaining tenants due to the macro environment. MySpace was asked to restore the building to a 98% occupancy rate by the end of Q1.
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Re-Brand |
Promotion |
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Positioning |
Pricing |
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The Results:
Within 75 days the MySpace leasing team rented 30+ units and helped management implement a renewal strategy that minimizes risk while bringing rates in line with market pricing ahead of the busy season ahead.
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Ready to optimize your rental portfolio?
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View Previous Rental Reports
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