Retail Rents Rise Again In Park Slope, Report Says

PARK SLOPE, BROOKLYN — There is no relief in sight for business owners renting on two main stretches in Park Slope.

Retail rents for ground-floor businesses have increased yet again along Fifth and Seventh avenues, according to a new report from the Real Estate Board of New York.

The average rent increased on Fifth Avenue, between Ninth and Union streets, from $79 per square foot in the summer of 2016 to $94 in the summer of 2017, according to the report, an 18 percent rise.

And on Seventh Avenue, also between Ninth and Union, saw an average rent increase from $92 per square foot to $124 last summer until this summer, the report said, up 35 percent. That number is just shy of the highest REBNY has seen since it started tracking data in the neighborhood, when the average retail rent was $129 per square foot this winter, the report says.

Across all of Brooklyn, retail rents increased year-over-year in 10 of the 15 major retail corridors in Brooklyn that were measured. The board attributes this growth to more hotel and office developments that increase foot traffic in these areas.

"New developments are drawing more attention, particularly from retailers that are looking to develop a presence in Brooklyn as an extension of their Manhattan mainstays," REBNY President John Banks said in a statement. "In spite of shifting national retail market conditions, Brooklyn continues to present attractive storefront opportunities in growing, more densely populated neighborhoods."

Earlier this year, when the report compared winter 2017 to winter 2016, rents had increased along Seventh Avenue and dipped slightly on Fifth.

The report cautioned against reading too much into short-term fluctuations.

"We must stress that a change between two consecutive periods does not necessarily indicate a change in the market," the report said. "Such short term fluctuations may only be the result of spaces coming on or off the market. However, as we build historical data, we can identify long-run trends that suggest a gradual market shift. The median rent information, the range of rent information and this analysis of the data should help readers receive a comprehensive and accurate picture of the market in these selected corridors."

You can read the full report here.

(h/t DNAinfo)

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