The business cycles continue. In Brooklyn office bust?, subtitled "Eager developers may have gotten ahead of themselves with projects in far-flung nabes," the Real Deal suggests that demand does not meet supply:
What does it mean for the office projects floated (but not yet approved, much less built) for Atlantic Yards/Pacific Park, at Site 5 and B4? Well, those sites offer much greater proximity to Manhattan and Downtown Brooklyn, as well as solid transit.
So they remain conceivable, given those advantages. But there's also new supply planned nearby. Expect more fluctuation.
Indeed, the numbers show that developers thought demand for hip offices would take off: There are 23 office projects underway in Brooklyn, which will add roughly 6.9 million square feet to the market by 2020, according to Cushman & Wakefield. The amount of new supply accounts for roughly 20 percent of Brooklyn’s 45 million-square-foot market, whereas in Manhattan, new office supply makes up about 7 percent of the market, Colliers International data shows.Especially in neighborhoods like Red Hook, far from transit, or Sunset Park, with lots of supply, and Bushwick, with much potential supply, the market is challenging.
And while leasing activity in Brooklyn stood at 430,000 square feet in the first quarter of 2017 — more than double the volume of a year earlier — it couldn’t keep pace with the 900,000 square feet of new space delivered to the market in early 2017, according to CBRE.
What does it mean for the office projects floated (but not yet approved, much less built) for Atlantic Yards/Pacific Park, at Site 5 and B4? Well, those sites offer much greater proximity to Manhattan and Downtown Brooklyn, as well as solid transit.
So they remain conceivable, given those advantages. But there's also new supply planned nearby. Expect more fluctuation.
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