Wednesday, February 8, 2017

Rents Rising at Ridiculous Rates on Bedford Avenue

Bedford Avenue, Williamsburg, Brooklyn. Photo courtesy of LWYang
According to an annual real estate report published by CPEX Real Estate, rents on Bedford Avenue in Brooklyn have skyrocketed faster than any other retail corridor in all of Brooklyn. In the past ten years shops on Bedford Avenue have experience rent hikes averaging 477 percent.

The CPEX report states that the going rate for retail space on Bedford between North 3rd Street and North 8th Street is over $300 per square foot. CPEX is a brokerage that focuses on commercial business. The area in question now is home to Whole Foods, Apple, Equinox and WeWork, among others. The extreme rental rise has rendered that 5 block stretch the single most desired, and expensive, shopping area in Brooklyn, says the report.

Not far away on Bedford Avenue, just a few blocks south between Metropolitan Avenue and South 5th Street, rents are now up to $149 per square foot. Ten years ago the cost to rent was about $40.
Ryan Condren, a managing director at CPEX who helped create the report explained that the north section of Bedford is “way more prime.”

"The train obviously allowed it to be what it is. The retail has only gotten stronger and stronger," he said, referring to the L train stop on Bedford and North 7th Street.

Condren says the trend is going to continue, since people will "go far out of their way to go to Apple or to that Whole Foods. All of a sudden, other retailers want to be there because they'll feed off of that."

The report goes on to point out other areas that are on the brink of a rent cost explosion. He said to look for rapid growth on: Fulton and Lafayette in Fort Greene, Franklin Street in Greenpoint, Nostrand Avenue in Crown Heights, Flatbush Avenue and Church Avenue in Flatbush, Wyckoff Avenue in Bushwick and Fourth Avenue in Sunset Park.