Retail Rents Tick Up In Prospect Heights, Report Finds

PROSPECT HEIGHTS, BROOKLYN — Rents are ticking upward once again for businesses on one of Prospect Heights' main thoroughfares, a new report says.

The average rent for ground-floor retail space on Flatbush Avenue, from Fifth Avenue to Grand Army Plaza, increased from $101 per square foot to $109 per square foot from summer 2016 to summer 2017, according to the report, from the Real Estate Board of New York.

That's a 7 percent uptick during that time, which the board says is attributable to interest in the Barclays Center and newly completed apartment buildings bringing more foot traffic to the area.

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.

"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, the board found retail rents in Prospect Heights holding steady from winter 2016 to winter 2017.

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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