DOWNTOWN BROOKLYN Q4 2024 MARKET REPORT
Updated quarterly, this report from the DBP Real Estate team provides insight on real estate market data, development progress and commercial leasing activity in Downtown Brooklyn.
DEVELOPMENT SNAPSHOT
COMPLETED PROJECTS (SINCE 2004 REZONING)
23,428
2.8 M
UNDER CONSTRUCTION + PIPELINE PROJECTS
2,368
8,377
700 K
103
Downtown Brooklyn Partnership’s (DBP) Development Matrix captures projects that have been completed since the 2004 Downtown Brooklyn rezoning, including development activity, project status and anticipated completion dates.
For more detail information, please see the full Q4 2024 Development Matrix summary and map at: https://www.downtownbrooklyn.com/news/report/downtown-brooklyn-development-matrix/
COMMERCIAL OFFICE
COMMERCIAL OFFICE LEASES
Rubenstein Law Firm inked a deal for 5,000 sq. ft. on the 12th floor of One Willoughby Square. The firm will be relocating from its 2,500 sq. ft. space at 300 Cadman Plaza West.
Streaming service, Philo, signed a five-year lease for 8,100 sq. ft. on the 18th floor of One Willoughby Square.
The HOPE Program, a nonprofit skills-training organization, has renewed its 7,500 sq. ft. lease at 1 Smith Street for another 10 years.
203 Jay Street has secured several new tenants in recent months. Software company Elevate Point has leased 9,312 sq. ft. Nonprofit legal services provider Access Justice has also signed a lease for 9,397 sq. ft., relocating from their 5,000 sq. ft. office at 44 Court Street. Additionally, tutoring company Lindamood-Bell has signed a lease for 3,253 sq. ft. in the building, moving from 185 Montague Street.
Nearby, Gersh Academy, a K-12 school for autistic students has signed a 58K sq. ft. lease at 25 Chapel St.
COMMERCIAL OFFICE VACANCY + RENTS
In the fourth quarter of 2024, office asking rents in Downtown Brooklyn rose slightly to $58.11 per sq. ft. — a 0.6% increase quarter-over-quarter and a 2.9% increase year-over-year. Overall vacancy rates declined to 20.2%, down 140 bps from the previous quarter and 150 bps from the same period last year, reflecting a steady improvement in market conditions.
Downtown Brooklyn’s asking rents remain $2.57 per square foot higher than in Lower Manhattan, where rents increased modestly to $55.54 per sq. ft. Vacancy
Overall Average Office Vacancy by Submarket
in Lower Manhattan remained high at 24.3%, 410 bps higher than Downtown Brooklyn. The availability of direct and sublet space in Lower Manhattan exceeds 20 million sq. ft., which is nearly 70% of the total Brooklyn office inventory. Midtown and Midtown South continue to command the highest rents at $78.15 and $77.19 per sq. ft. respectively, though both submarkets maintain higher vacancy rates of 22.3% and 25.8%, underscoring Downtown Brooklyn’s competitive positioning as an affordable and improving office market alternative.
Source: Cushman and Wakefield
Overall Average Asking Rent PSF by Submarket
Source: Cushman and Wakefield
RETAIL
NEW RETAIL LEASES ACROSS DOWNTOWN BROOKLYN
Downtown Brooklyn saw 13 new retail openings and several leasing announcements during the fourth quarter of 2024. Highlights include:
• Guitar Center has opened its new 20,000 sq. ft. format store at 540 Fulton Street after relocating from Atlantic Terminal.
• Two quick-service chains opened in recent months: Just Salad at 58 Court Street and Jersey Mikes at 276 Livingston Street.
• Blank Street Coffee has opened its second Downtown Brooklyn location at 1 Boerum Place in early January. The new store is its largest in the borough and features extra seating and large curved windows.
• TAKE ME WITH YOU, a boutique hotel gift shop featuring a currated selection of art and gifts by local artists opened at the Ace Hotel.
• Two new shops opened on Fulton Street: Lids opened at 517 Fulton Street and Happy Munkey, a legal cannabis brand, opened at 453 Fulton Street.
• A new full-service gym with locations in Manhattan, GYM NYC, opened its first outer-borough location at 85 Livingston. This comes after two other boutique fitness operators, Hot 8 Yoga and Body Rok, entered the market.
Several new businesses have opened at City Point this past quarter, including:
• Primary care provider, One Medical, has opened along Albee Square West.
• Cookie shop, Bang Cookies, opened along Prince Street.
• New vendors in Dekalb Market Hall include Singaporean Hainanese eatery, Hainan Jones, Asian restaurant, Wok Fusion Kitchen, and Armored Grilled Cheese, a brand specializing in non-dairy cheese at an affordable price.
There have been a number of exciting ‘coming soon’ announcements in the neighborhood, including:
• Nike has announced that they are opening their first Downtown Brooklyn location across from Barclays Center at Atlantic Center in May 2025.
• Mito, an elevated Japanese restaurant is opening at 280 Ashland Pl in February 2025.
• Van Leeuwen Ice Cream has signed a lease at City Point facing Albee Square West and the main concourse.
• Popular healthy eatery, OAKBERRY, has signed a lease at 230 Livingston Street. Nearby, Le Café is slated to open at the new Hanover House at 17 Hanover.
• Panda Express is opening in the former Queen Italian Restaurant space at 84 Court Street.
• Adams Street Daycare has signed a lease at 345 Adams St.
Guitar Center Opens at 540 Fulton St
Blank Street Opens at 1 Boerum Pl
Credit: Blank Stret
SALES
In the fourth quarter of 2024, the median sales price in Downtown Brooklyn was $645,500, a decrease of 30.7% year-over-year. The median asking price per sq. ft. was $1,320, a 9.3% decrease year-over-year.
• The median asking price per sq. ft. for 1-bedroom apartments in Downtown Brooklyn was $1,260 this quarter, which is about the same as last quarter, and only 2.6% less than Q4 2023.
• For 2-bedroom units, the median asking price per sq. ft. is $1,303, which is a 9.2% increase from last quarter and a 13.1% decrease year-over-year.
Downtown Brooklyn’s median sales price dropped 30.7% year-over-year, even though the price per square foot fell only 9.4%. This is due to more sales of small and affordable units like studios and one-bedrooms, which typically have a higher PPSF but lower overall prices. Fewer larger, high-priced properties were sold, pushing November 2024’s median sale price to a record low of $449,000—the lowest since October 2011, according to StreetEasy.
Source:
Median Residential Sale Price Per Square Foot, Downtown Brooklyn
Source: StreetEasy
Median Residential Sales Price + Price Per Sq. Ft. - Downtown Brooklyn
StreetEasy
Data from Placer.ai shows that visits to Downtown Brooklyn in December 2024 have recovered 91% of pre-pandemic levels, growing 2.5% year-over-year. Due to growth in the residential population, visits by local residents are now 47% above pre-pandemic levels, with a 20% year-over-year growth rate. Employee traffic has returned to 89% of pre-pandemic levels, a 4.6% improvement since December 2023.
Notable trends include:
• Holiday foot traffic on both Fulton Street and Flatbush Ave + Atlantic Ave recovered 95% of December 2019 levels. Fulton Mall saw 20,000 visits a day during December 2024, a 1% increase from the previous December. The Atlantic Terminal + 300 Ashland area saw 41,000 average daily visits in December, a 5% increase from the previous year.
• Office worker-heavy areas, Court Street and Brooklyn Commons, continue to see the stagnant recovery rates post-pandemic. Court Street has reached 63% of 2019 levels, and Brooklyn Commons saw 71% of pre-pandemic levels.
Downtown Brooklyn Visits Compared to Equivalent Month in 2019
Downtown Brooklyn Average Daily Visits by Area, December 2019-2024
Source: *Source: Placer.ai. Data include visits of over 10 minutes to each area, including visitors, employees, and residents.
Source: Placer.ai
DOWNTOWN BROOKLYN FOOT TRAFFIC VIA MRI ONLOCATION
Foot traffic in Downtown Brooklyn continues to show strong activity. Trends in December 2024 show:
• Albee Square experienced the most activity due to holiday shopping crowds at Fulton Mall and City Point, seeing between 20,000 – 30,000 people per day, with Thursdays and Fridays experiencing the most traffic. Activity peaked around 3pm with 3,500 people per hour passing through the area.
• The Jay Street entrance to Brooklyn Commons saw the second highest foot traffic counts, with 15,000 to 25,000 people per day on weekdays. As expected, the hours between 8:00 AM and 5:00 PM see the most activity, between 1,000 – 1,500 people per hour. As this location is frequented predominantly by students and office workers, weekends saw
5,000 to 7,000 visitors daily. In contrast, the Bridge Street section of Brooklyn Commons, located further away from subway stations and pedestrian routes, averaged approximately 5,000 daily visitors.
• Abolitionist Place, which serves as a recreational open space rather than a pedestrian passage, saw the lowest counts. Foot traffic peaked at approximately 3,500 people per day.
Source: MRI OnLocation
Source: MRI OnLocation
Downtown Brooklyn Average Daily Foot Traffic by Location, December 2024
Downtown Brooklyn Average Foot Traffic by Location by Time of Day, December 2024
SUBWAY RIDERSHIP TRANSPORTATION
In December 2024, subway ridership across all Downtown Brooklyn stations saw an 8% increase yearover-year, with 7,500 more subway trips beginning in Downtown Brooklyn each day. Subway ridership has recovered 75% of 2019 levels. Takeaways include:
• All but one station (Nevins Street) experienced a rise in ridership.
• DeKalb Ave (B,Q,R) station experienced the largest bump in ridership, with almost 2,000 more daily riders - a 20% increase year-over-year, most likely due to the opening of Brooklyn Paramount in Spring 2024. Recent residential developments along Flatbush Ave Ext and the success of City Point are also contributors to this increased traffic.
• Hoyt-Schermerhorn (A,C,G) has experienced the greatest recovery, reaching 81% of its ridership December 2019.
• More office-oriented locations like Jay St-MetroTech (A,C,F,R) and Borough Hall/Court St (2,3,4,5), have experienced the slowest recovery post-pandemic, at 69% and 67% of 2019 levels respectively.
Downtown Brooklyn Average Daily Subway Ridership by Station, December 2019-2024
Source: MTA
CITI BIKE RIDERSHIP
In October 2024, Downtown Brooklyn recorded over 170,000 Citi Bike rides—a 48% year-over-year increase, with 56,707 additional riders. Ridership per station in October 2024 was 85% higher on average compared to October 2019, fueled by the addition of five new docking stations and expanded bike lane infrastructure over the past five years. Stations seeing the largest growth include Bond St + Fulton St near City Point, Dekalb Ave + Hudson Ave by the Brooklyn Paramount, Willoughby St + Ashland Pl near Long Island University, and Ashland Pl + DeKalb Ave by the Brooklyn Hospital Center.
Top Stations by
St + Fulton St
Ave + Hudson Ave
Willoughby St + Ashland Pl
Ashland Pl + DeKalb Ave
Ave + Fort Greene Pl
PROPERTY SALES
• 80 Dekalb Avenue: KKR sold the 365-rental unit apartment building at 80 Dekalb Ave to Atlas Capital Group for $202 million. This transaction ranks as the third largest in Brooklyn this year, following Silverstein Properties’ $672 million acquisition of the Brooklyn Tower and KKR’s $240 million purchase of the residential portion of the Paxton at 540 Fulton Street in July 2024.
DEVELOPMENT OVERVIEW
As of Q4 2024, Downtown Brooklyn development includes:
• 57 Willoughby Street: Prosper Property Group purchased the six-story, 96,000 sq. ft. building from Meadow Partners for $48 million. The fully occupied office building recently underwent $10 million in renovations.
• 152 projects completed since the 2004 rezoning, including 23,428 residential units (of which 4,828 are affordable), 2,777 million sq. ft. of office space and 2,482 million sq. ft. of retail.
• 16 projects under construction including 14 with 4,559 residential units (1,257 of which are affordable) and 100,000 sq. ft. of retail.
• 27 projects planned, including at least 3,818 residential units (of which 858 will be affordable).
23,428
4,559
units under construction across 14 projects
RECENTLY COMPLETED
• Hanover House at 17 Hanover: The first residents began moving into Lonicera Partners’ 34-story tower in October 2024. The project, at the corner of Hanover and Livingston, includes 314 rental units, 95 of which are affordable, and 9,000 sq. ft. of retail space.
595 and 615 Dean Street
3,818
• Webster Apartments at 229 Duffield St: The former Indigo Hotel at 229 Duffield Street has been transformed into a 150-room apartment building and received a temporary certificate of occupancy. Residents are expected to move in starting May 1st.
NEWLY ANNOUNCED DEVELOPMENTS
• 48 Hoyt Street: Watermark Capital Group recently filed plans to construct a 99-unit, 27 story multifamily building at the sites between 208 Livingston St and 42-50 Hoyt St. This comes after Watermark Capital Group acquired the site through ground lease this past summer. The site joins Watermark Capital Group’s portfolio of recently acquired development sites at 144 Saint Felix Street, 182 Duffield Street, and 175 Pearl Street.
• 362-370 Livingston Street: Plans for a third building, including 77 units, at Developing NY State’s site at 370 Livingston were filed. This building joins two other planned buildings on the site, including a 22-story, 144-unit building, and a 15-story, 75-unit building, bringing the total to 296 units on the site.
ONGOING CONSTRUCTION
RESIDENTIAL RENTS
• 240 Willoughby Street: Adjacent to The Brooklyn Hospital Center campus, Rabsky Group’s 30-story, 300-unit building at 240 Willoughby Street continues interior buildout. The tower, fronting Fort Greene Park, will include 147 affordable units. Rabsky is also renovating the existing 21-story, 189-rentalunit tower at the site. The new tower is nearing completion.
• 625 Fulton Street: Interior fit out continues at Rabsky Group’s 35-story residential building. The building will have 1,044 rental units, with 313 affordable units, and a 250-car parking garage. Additionally, there will be 46,000 sq. ft. of commercial retail space, including a 26,000 sq. ft. grocery store. The building is anticipated to be completed this year.
• 55 Willoughby Street: Facade work is complete at Lonicera Partners’ 38-story, 295-rental unit residential tower. The building will include 89 affordable units and 3,500 sq. ft. of retail space. Nearly 107,000 sq. ft. of air rights were transferred from 57 Willoughby Street.
• 111 Willoughby Street: The Triangle Equities/The Michaels Organization’s tower is wrapping up interior fit-out. The 40-story tower will bring 227 rental units, 69 of which will be affordable. There will also be a 20,000 sq. ft. ministry center for the neighboring Oratory Church of St. Boniface. The site includes 16,000 sq. ft. of air rights transferred from 115 Willoughby Street. The development is slated for completion this Spring.
• The Brook at 565 Fulton Street: The 51-story residential tower by Witkoff and Apollo is nearing completion with facade work done and interior fitout underway. Located at Fulton and Flatbush, it will feature 591 rental units (178 affordable) and 25,000 sq. ft. of retail space. Occupancy is expected this summer.
• 98 DeKalb Avenue: Rockrose’s 49-story residential tower is undergoing facade work. Located along Ashland Place across from The Brooklyn Hospital Center, the tower will yield 569 rental units, 178 of which will be affordable, and 3,775 sq. ft. of retail space. Completion is expected in late 2026.
• 89 DeKalb Avenue: Facade work is over half-way complete at RXR’s 30-story, 324-rental unit mixeduse development. The fully electric project will include 98 affordable units and 55,000 sq. ft. of
academic and office space at the base that will be used by Long Island University. A late 2026 completion is expected.
• 71 Prince Street/202 Tillary Street: Madd Equities’ 31-story residential complex will yield 465 rental units, including 118 affordable units, 4,000 sq. ft. of retail space, and 40- 50 parking spaces. 71 Prince Street is undergoing facade work and is expected to be completed by 2026.
• 150 Lawrence Street: The superstructure at Twin Group Associates’ 25-story, 101-condo unit residential building is undergoing facade work and interior fit out. The tower will have 8,200 sq. ft. of retail space and expects a 2026 completion.
• 570 Fulton Street: Developing NY State’s project has topped out and is undergoing facade work. The 23-story, residential tower includes 163-rental units (including 33 units of affordable housing). The building will also have 5,200 sq. ft. of commercial space.
• 19 Rockwell Place: Brookstone Developers’ 27-story building with 174 rental units is undergoing exterior work.
• NYU: NYU is wrapping up its demolition of two buildings in their MetroTech campus. The Civil Engineering Building (located at 80 Johnson Street) was demolished last summer, and the Jacobs Administrative Building (located at 333 Jay Street) is in the process of being razed. No plans for the sites have been filed.
• 88 Schermerhorn Street: Facade work is underway at Jankos Group’s 20-story building, which comprises 58 rental units, including 14 affordable units.
• 362-370 Livingston Street: Developing NY State continues demolition work on the existing buildings to make way for three proposed 22-story buildings, totaling 296 units. The site will include 7,162 sq. ft. of retail space.
• 275 Flatbush Ave Ext: The Jay Group recently completed demolition work to make way for 450 residential units (112 of which will be affordable) in 5 separate buildings at 275 Flatbush Avenue Extension. The proposed 27-story buildings will replace the former car wash and surrounding parking lot.
NEWS + UPDATES
FULTON MALL STREETSCAPE UPGRADES
Work began in September on the Fulton Mall Revitalization Project – an $8 million investment by the City that is managed by the Department of Parks and Recreation. The streetscape improvements, which will make Fulton Mall greener and more beautiful, include enlarged planting beds, new plantings, signature benches, and permeable pavers around planting beds. The transformation is another realization of DBP’s Public Realm Action Plan, a template for a more pedestrian friendly, sustainable, and welcoming downtown.
The project is being implemented in two-block phases, with three phases being complete, the full project is expected to be completed by this summer.
CITY OF YES HOUSING OPPORTUNITY
City Council approved City of Yes for Housing Opportunity in December. Downtown Brooklyn Partnership has been a strong advocate for the initiative, which aims to modernize the city’s zoning rules and improve housing affordability.
Changes relevant to Downtown Brooklyn include:
• Increasing height limits on corridors such as Livingston and Schermerhorn Streets and Flatbush Avenue.
• Removing parking mandates.
• New provisions to facilitate office-to-residential conversions.
• Universal Affordability Preference bringing important changes to R10 districts.
CONGESTION PRICING
New York City’s congestion pricing program went into effect Sunday, January 5, marking the first time a U.S. city has implemented such a system.
While it is too early to tell, there may be side effects that impact Downtown Brooklyn. Early data released by the MTA suggests a 10% faster travel time over the Manhattan Bridge and the Brooklyn Bridge compared to a year ago.
Fulton Mall Streetscape Upgrades
City of Yes Housing Opportunity
Credit: Department of City Planning
NEWS + UPDATES
L10 Arts and Cultural Center Opens
L10 Arts and Cultural Center, a 65,000 square foot multidisciplinary hub, opened at 10 Lafayette Ave in Downtown Brooklyn on January 28th. The center will host a vast range of cultural programs and activities and is operated by four local arts institutions. This includes:
• A new branch of the Brooklyn Public Library.
• A gallery and performance space for the Museum of African Diasporan Art (MoCADA).
• An archival space and cinemas by the Brooklyn Academy of Music (BAM).
• The first permanent space for 651 ARTS.
The new center is located at 300 Ashland, a 460,000 square foot mixed-use site that was developed by Two Trees in 2017. The site is also home to Apple, Whole Foods, 379 housing units (including 76 affordable), and a public plaza.
DBP’s 2024 Real Estate Breakfast
In November, the Downtown Brooklyn Partnership (DBP) hosted its annual Real Estate Breakfast at the Ace Hotel Brooklyn. This year’s focus was on the state of the retail market in Downtown Brooklyn, featuring two dynamic panel discussions that brought together business leaders, policy experts, and other community stakeholders to discuss the opportunities and challenges shaping the neighborhood’s retail landscape.
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These Property Changes Are Pivotal for Creating More NYC Child Care Centers
Last-minute holiday rush: Shoppers flood Downtown Brooklyn’s Fulton Mall
‘Breaking glass ceilings’: Happy Munkey opens Fulton Mall’s first legal cannabis dispensary
Atlantic Terminal Mall turns 20, reflecting the evolution of Downtown
A first look at the massive new cultural space that just opened in Brooklyn
L10 Arts and Cultural Center
Credit: Gregg Richards
Small green space on Willoughby Street breathes new life into Brooklyn neighborhood
DBP Real Estate Breakfast 2024