With residential real estate development in Brooklyn moving forward at a rapid pace, many are hoping that the commercial side of the industry follows suit. Recently, the Downtown Brooklyn Partnership and Economic Development Corp. sat down to talk about commercial growth in the borough.
It was not that long ago that the city looked at Brooklyn as a "back-office market." However, things have changed quite a bit over the past 10 years, with many companies wanting to setup their headquarters in the borough.
In 2004, downtown Brooklyn was rezoned with the idea that more commercial space would be built. This has not been the case, as only roughly 250,000 square feet has been developed. Instead, most of the new developments in the borough have been residential.
The head of the Economic Development Corp. spoke about the risk involved with the current structure:
"We need to take a hard look at our incentive structure as well as the existing physical stock, because with vacancy rates in the [4% range], that is something that, if we don't figure it out very quickly, … downtown Brooklyn will have an issue in terms of constraints on its growth."
It is easy to look at Brooklyn from afar and assume that commercial real estate development should not be a problem, but this is far from the case. There are many challenges facing companies, including the overall cost as well as transportation issues in the area.
Anybody who is interested in commercial real estate development in Brooklyn or surrounding areas will require the assistance of many professionals, including a legal team. Such a team can help prevent many legal issues that could stall development indefinitely.
Source: Crain's New York Business, "City mulls ways to spur Brooklyn office development" Joe Anuta, Sep. 16, 2014