Brooklyn’s retail market remains highly competitive in both prime residential areas and emerging shopping destinations, such as City Point and Industry City, according to the latest report from REBNY. Despite some sectors scaling back on leasing activity, overall demand remained strong.
In H2 2023, average asking rents in 12 out of 17 corridors were below pre-pandemic levels with a decline ranging from -11% to -59%, averaging at a decrease of 21%. However, robust performance was seen in competitive neighborhoods due to large transactions. Year-over-year data showed that average asking rents increased in 13 out of the total of15 corridors studied. Williamsburg and popular residential areas like Park Slope experienced high competition for retail space while Greenpoint and Gowanus offered more affordable options.
Destination experiences like Industry City continued to attract tenants with expansions from Brooklyn Made Store and Japan Village. Luxury brands thrived specifically within Williamsburg while established neighborhoods saw an increase in food establishments as well as gyms and health retailers opening up shop.
Business setup has been hindered by challenges such as staff shortages and permit delays particularly affecting lower-traffic areas.
