DOWNTOWN BROOKLYN
Q4 2025 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.
NEIGHBORHOOD HIGHLIGHTS
REAL ESTATE
27,571
Housing units built since 2004
22
New businesses opened in Q4
VISITATION + COMMUTING ACTIVITY
3.4M
Pedestrian visits to Downtown Brooklyn in Q4
9.7M
Subway trips in Q4
HISTORIC HOUSING GROWTH
Downtown Brooklyn has delivered a historic 4,421 residential units in 2025, surpassing the previous record of 2,800 units in 2017. Housing delivery this year includes 1,308 affordable units. View our development dashboard to learn more.
55k
Sq. Ft. of office space leased in Q4
157k
Citibike rides in October 2025
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RETAIL
As of Q4 2025, Downtown Brooklyn has 561 active businesses and 153 vacant storefronts, resulting in a retail vacancy rate of 21%. Vacancy rates differ by sub-district, with Fulton Mall reporting a 20.3% vacancy rate, MetroTech at 23.7%, and Court-Livingston-Schermerhorn having 15.8%.
NEW RETAIL ACTIVITY
Downtown Brooklyn saw 22 new retail openings and several leasing announcements during the past several months. These include:
• Grocery Store Expansion: Downtown Brooklyn continues to attract grocery retailers. Hashi Market, a Japanese supermarket offering fresh foods, international cuisines, and daily essentials, opened in November at 299 Atlantic Avenue. The Fresh Grocer, a grocery chain based primarily in New Jersey, celebrated its first NYC opening on February 13th at 523 Fulton Street. The store will be located across from Lidl, which opened last spring at 490 Fulton Street. Aldi held its grand opening in November at 625 Fulton Street on the ground floor of The Rocklyn at 490 Fulton Street.
• City Point Additions: City Point welcomed two new tenants this month. Just Salad, a healthy quick-service restaurant, opened at Albee Square West, and Warby Parker, the eyewear brand, opened at the Prince Street walkway. Recent arrivals also include Swarovski jewelry and Van Leeuwen ice cream. Carnegie Diner will bring its farm-fresh comfort food and all-day menu to the former Sixpoint space in DeKalb Market this year.
• International Brands Arriving: Two major Chinese brands are expanding to Downtown Brooklyn. Mixue (pronounced ME-shway), an ice cream and bubble tea shop known as the world’s largest food chain, is coming to 519 Fulton Street, with a lease reportedly at $225 per sq. ft.. Chinese coffee company Luckin Coffee has also signed a lease at 211 Schermerhorn Street.
• Fitness & Wellness: Club Studio Fitness has leased 32,200 square feet on the second floor of 625 Fulton Street. The upscale health club will offer premium gym equipment, boutique classes, and wellness services. Cadet Athletic Performance, a locally owned sports training facility, opened this quarter at 299 Livingston Street. CorePower Yoga will also open at 1 Willoughby Square, in one of buildings Albee Square West facing storefronts.
• Fine Dining: Two upscale restaurants made announcements this quarter. Din Tai Fung, the Michelin-starred chain known for soup dumplings, will occupy 20,000 square feet at The Brook in early 2027 - its second NYC location. At 286 Livingston St., Kashi, an Indian restaurant described by The New York Times as “lavish,” opened its doors. It features varied seating areas, vintage décor, elaborate lighting, and a mosaic bar.
• Casual Dining: Several casual dining outlets opened or announced locations. Teriyaki One began operations at 500 Fulton Street. Jimmy John’s sandwich shop opened at 32 Court Street. SoBol, an açai bowl chain, will open at the Pioneer Building (41 Flatbush Avenue) in late February. Dos Toros Taqueria opened in January at One Boerum Place, where Quickway Japanese Hibachi will also open soon, joining Chopt and Blank Street Coffee
The Fresh Grocer opens at 523 Fulton St.
Warby Parker at City Point
NEW FLEXIBLE WORKSPACES
THE MALIN - 57 COURT ST
The Malin Brooklyn Heights is bringing its signature design-forward coworking experience to 57 Court Street in May 2026. Spanning 15,000 square feet, this will be The Malin’s second Brooklyn location and seventh in New York City. The space features open seating areas, 11 private offices, 18 dedicated desks, three meeting rooms, 12 private booths, and a spacious library - all designed with The Malin’s hallmark aesthetic of elevated minimalism.
Located across from Borough Hall in Downtown Brooklyn, the new location is an ideal workspace for professionals who value connection, character, and convenience. Members will enjoy complimentary concierge services, exclusive perks, and a community-focused environment designed to help people do their best work. The space joins SoulCycle, Sephora, Qdoba, and Hot 8 Yoga as a tenant in the building.
JAY SUITES - 41 FLATBUSH AVE
Jay Suites Brooklyn marks a major milestone for the Manhattan-based coworking leader, bringing its hospitality-driven approach to flexible workspace across the East River for the first time. Now open at the historic Pioneer Building at 41 Flatbush Avenue, this 30,000-square-foot space occupies the entire second floor of the landmark 1909 building.
Located steps from Barclays Center and nearly every major subway line, Jay Suites Brooklyn offers 65 private office units, four meeting rooms, private pods, an upgraded kitchen, and rooftop deck access with sweeping Brooklyn views. For professionals living in the borough’s new residential towers who no longer want to commute to Manhattan for premium workspace, Jay Suites Brooklyn delivers a high-design, full-service office center rooted in their own community.
1 WILLOUGHBY SQ
Following a recent recapitalization led by KSR Capital principals
Abraham Kassin and Morris Sabbagh, Brooklyn’s tallest office tower is launching an ambitious pre-built suite program with move-in-ready offices ranging from 2,000 to 10,000 square feet.
Each turnkey suite features column-free floor plates, 14-foot ceilings, and dramatic 10x15-foot windows framing unobstructed views of Brooklyn and Manhattan. Located above the one-acre Abolitionist Place Park with direct access to over a dozen subway lines, the 35-story tower combines FXCollaborative’s award-winning design with modern amenities including private terraces, a rooftop lounge, and garden spaces. With new ownership committed to aggressive leasing, it’s a rare opportunity to secure premium, plug-and-play office space in the heart of Downtown Brooklyn’s creative district.
COMMERCIAL OFFICE
COMMERCIAL OFFICE LEASING
• The Arizona College of Nursing is establishing a location in Downtown Brooklyn, leasing 40,000 square feet at The Paxton at 532 Fulton Street. The school has 24 satellite campuses nationwide, but this is its first in New York State. The asking rent is reported as $56 per square foot, and they will be joining the NYC Department of Health and Mental Hygiene office, which has occupied 17,750 square feet in the building since 2023, along with Guitar Center on the ground floor level. The Paxton is a 43-story tower with 327 apartments, 137,000 square feet of offices, and 33,000 square feet of retail.
• 141 Willoughby Street: The owner of the trophy office building, Capstone Equities, has filed permits to convert 233,000 sq. ft. of office space from floors 8 to 24 to over 200 residential units. This activity will cut vacancy rates by several basis points when it goes into effect.
COMMERCIAL OFFICE VACANCY + RENTS
Downtown Brooklyn’s office market demonstrated continued strength in Q4 2025, with asking rents holding at $58.71 per square foot (up 1% year-overyear) and vacancy declining sharply by 120 basis points quarter-over-quarter.
The submarket maintains a competitive edge over Lower Manhattan, commanding a $2+ rent premium ($58.71 vs. $56.23 per square foot), a gap that has
persisted since Q4 2023. Meanwhile, Manhattan’s premium districts command higher rents - Midtown South at $83.58 and Midtown at $76.03 per sq. ft..
Downtown Brooklyn boasts a lower rate vacancy rate than Lower Manhattan (22.2%) and Midtown South (23.9%), but remains above Midtown’s vacancy rate of 20%.
Source: Cushman & Wakefield
Source: Cushman & Wakefield
141 Willoughby Square
RESIDENTIAL SALES
In the fourth quarter of 2025, the median asking price per sq. ft. in Downtown Brooklyn was $1,457, an increase of about 10.38% year-over-year.
• The median asking price per sq. ft. for 1-bedroom apartments in Downtown Brooklyn was $1,349 this quarter, which is 6.3% higher than the previous quarter (Q3 2025) and 7% higher than the same quarter last year (Q3 2024).
• For 2-bedroom units, the median asking price per sq. ft. was $1,472, which is a 12.4% increase from last quarter and a 13% increase year-over-year.
Median Residential Sale Price Per Square Foot, Downtown Brooklyn
RESIDENTIAL RENTALS
The average residential rent in Downtown Brooklyn was $4,875 across all unit types in December 2025, a 2.8% increase year-over-year. Rents for studio, one-bedroom, and two-bedroom units rose 4.3%, 0.9%, and 3.2% year over year, respectively.
Downtown Brooklyn (2.8%) and its surrounding neighborhoods - Fort Greene (15.2%), Boerum Hill (13.1%), Cobble Hill (7.5%), and Brooklyn Heights (10.0%) - saw year-over-year increases in average rents, while average rents in DUMBO declined by 2.7%.
Median Rent Per Unit Size, Downtown Brooklyn
TRANSPORTATION
PEDESTRIAN + VISITATION TRENDS (VIA PLACER.AI)
Data from Placer.ai shows that visits to Downtown Brooklyn in Q4 2025 have recovered to 88% of pre-pandemic levels. Due to neighborhood growth, residential foot traffic is now 71% above prepandemic levels. Employee traffic is at 82% of pre-pandemic levels. Visitor foot traffic saw a 4.6% decline year-over-year, and employee foot traffic declined by 0.5% compared to the same quarter last year.
Visitation by location within the district varied. Notable trends include:
• Brooklyn Commons saw the biggest yearover-year increase in visitation, with foot traffic levels over 10% higher than December 2024. Brooklyn Commons foot traffic is now nearly 75% recovered compared to December 2019.
• Fulton Mall, Livingston-Schermerhorn, Court St, and Flatbush + Atlantic saw year-over-year decreases of 14.3%, 15.5%, 10.7%, and 12.4%, respectively.
Downtown Brooklyn Foot Traffic Recovery by Residents, Employees and Visitors
Downtown Brooklyn Average Daily Visits by Area, December 2019-2025
Source: Placer.ai. Data includes visits of over 10 minutes to each area, including visitors, employees, and residents
Source: Placer.ai
TRANSPORTATION
PARKS + PLAZA ACTIVITY (VIA MRI ONLOCATION)
In December 2025, foot traffic trends across Downtown Brooklyn’s parks and plazas show the following:
• Jay St. + Brooklyn Commons recorded the strongest foot traffic, averaging between 14,500 and 19,000 weekday visits per day. Activity typically peaked in the afternoon between 12:00 pm and 4:00 pm, with an additional spike around 8:00 am.
• The Plaza at 300 Ashland experienced an average of 6,500 to 9,000 daily visitors, with Wednesdays being the most active. Hourly traffic peaked between 4:00 pm and 6:00 pm at the plaza.
• Willoughby Plaza also saw 6,500 to 9,000 visitors per day, with the highest activity occurring on Wednesdays. Hourly traffic spiked between 12:00 pm and 1:00 pm.
• Albee Square recorded 6,500 to 8,000 daily pedestrians, again with Wednesdays showing the greatest activity. Foot traffic typically peaked around 3:00 pm.
• Abolitionist Place averaged 2,500 to 3,000 daily visits, with pedestrian activity peaking on Wednesdays. The highest traffic occurred between 1:00 pm and 5:00 pm, with an additional peak around 6:00 pm.
Downtown Brooklyn Average Daily Foot Traffic by Location, December 2025
Downtown Brooklyn Average Foot Traffic by Location by Time of Day, December 2025
TRANSPORTATION
SUBWAY RIDERSHIP
In December 2025, subway ridership across all stations in Downtown Brooklyn declined by 8% year over year, with approximately 8,000 fewer average daily riders across all stations combined compared to December 2024. Compared to 2019, ridership across Downtown Brooklyn stations recovered to 69% of pre-pandemic levels. The stations demonstrating the strongest post-pandemic recovery include:
• Hoyt-Schermerhorn (A, C, G): 72% of pre-pandemic ridership
• Atlantic Avenue/Barclays Center (2, 3, 4, 5, B, D, N, Q, R): 71% of pre-pandemic ridership
• DeKalb Avenue (B, Q, R): 68% of pre-pandemic ridership
From October through December, average daily ridership across all Downtown Brooklyn stations declined by 4% year over year. By comparison, Manhattan performed marginally better, with average daily ridership across key stations – including 59 St-Columbus Circle (A,B,C,D,1), Grand Central-42 St (S,4,5,6,7), 34 St-Herald Sq (B,D,F,M,N,Q,R,W), 34 St-Penn Station (A,C,E), 34 St-Penn Station (1,2,3), 14 St-Union Sq (L,N,Q,R,W,4,5,6), and Fulton St (A,C,J,Z,2,3,4,5) – showing a 5% year over year increase.
Despite this difference, post-pandemic recovery levels remain similar: in Q4, Downtown Brooklyn stations reached 72% of pre-pandemic ridership, compared with 77% at key Manhattan stations. Monthly recovery stood at 73% vs. 75% in October, 74% vs. 77% in November, and 69% vs. 80% in December for Downtown Brooklyn and Manhattan, respectively.
Downtown Brooklyn Average Daily Subway Ridership by Station, December 2019-2025
Source: MTA
Brooklyn vs. Key Manhattan Stations: Pandemic Recovery (Q4 2025)
Downtown
TRANSPORTATION
CITI BIKE RIDERSHIP
In October 2025, Citi Bike ridership in Downtown Brooklyn saw over 157,000 rides – a slight decrease of 0.6% compared to October 2024, likely due to inclement weather. The station seeing the largest growth, most notably include Schermerhorn St. & Court St, which saw a 100% increase due to the newly installed bike lane on Court Street, as well as the removal of the Court St + State St station. Other stations seeing significant growth include Willoughby St & Ashland Pl, State St & Smith St, Johnson St & Gold St, and 3 Ave & Schermerhorn St.
DEVELOPMENT
DEVELOPMENT OVERVIEW
As of Q4 2025, Downtown Brooklyn development includes:
• 167 projects completed since the 2004 rezoning, including 27,571 residential units (of which 6,062 are affordable), 2.8 million sq. ft. of office space and 2.6 million sq. ft. of retail.
• 11 projects under construction, including 2,061 residential units (382 of which are affordable) and 70K sq. ft. of retail.
• 26 projects planned, including at least 5,554 residential units (of which 1,251 will be affordable).
Recently Completed
• The Brook at 565 Fulton Street: 52-story rental tower with 591 units (30% affordable); developed by Witkoff Group and Apollo Global Management; features 30,000 SF of amenities including an outdoor pool, a basketball court, and a rooftop terrace; completed and began occupancy in November 2025.
• House 55 at 55 Willoughby: The 43-story residential building with 295 units, including 89 affordable, developed by Lonicera Partners, started leasing in late 2025. The building features a distinctive cantilevered design and includes two full floors of amenities including a rooftop lounge, a fitness center, and coworking spaces.
• One Nine Rockwell: Developed by Brookstone Developers, the 27-story, 172-unit boutique residential tower at 19 Rockwell Place features 90% of units with private balconies, and a 27th-floor sky lounge with wraparound terrace.
• 89 Dekalb Ave: 30-story, 324-unit all-electric mixeduse tower developed by RXR with Long Island Uni-
versity; includes 98 affordable units and 55,000 SF of academic space for LIU; features a smart glass facade and a comprehensive amenity package; completed late 2025.
• One Fifty Lawrence at 150 Lawrence St: 25-story, 100-unit residential building (marketed as One Fifty Lawrence/Lawrence Tower); features modern minimalist design with white facade, attended lobby, fitness center, and rooftop terrace; developed by Twin Group Developers; completed the Fall of 2025.
• The Livingston Hotel: 22-story, 104-key boutique hotel at 291 Livingston Street; Brooklyn’s first Hyatt (JdV by Hyatt brand); features a rooftop bar, a restaurant, modern industrial design with floor-to-ceiling windows; acquired by Midas Hospitality from bankruptcy for $35M; completed and operational in February 2026.
DEVELOPMENT
Ongoing Construction
• DWTN at 67 Prince St. (formerly 71 Prince Street/202 Tillary Street): Madd Equities’ 31-story residential complex with 465 rental units, including 118 affordable units, 4,000 sq.ft. of retail space, and a 50 space parking garage is nearly complete and leasing is expected to start in March.
• 370 Livingston St.: Construction is underway on three 22-story buildings, totaling 296 residential units and 7,162 square feet of retail space, being developed by Developing NY State.
• 275 Flatbush Ave Ext: The 450-unit residential project, which includes 5 buildings under 99 units, by Jay Group has topped out, and façade work has begun. The development will include 112 affordable units and is expected to be completed by the end of 2026.
• The Bowen at 285 Schermerhorn St.: Façade work is nearly complete on the 14-story, 129-unit condo project designed by GF55 Architects and developed by Urban Development Partners. The project is expected to be completed later this year.
• 170 Remsen St.: Demolition is complete on Rockrose’s development at the former St. Francis College campus for all buildings aside from the former Brooklyn Union Gas Company Building, which is landmarked. The project is set to include 747 residential units across three buildings and ground-floor retail.
Recently Announced
• 141 Willoughby St.: A joint venture between BH3 Management and Capstone Equities has acquired the office tower and is filing plans to reposition the asset into a mixed-use property, combining Class A commercial space and residential apartments. The 24-story tower, which was developed in 2023 and is currently vacant, will feature 200 residences alongside 110,000 sq. ft. of commercial space. Office and retail leasing on floors 1 to 7 at 141 Willoughby Street is now underway, with the residential conversion across 233,000 sq. ft. on floor 8 and above to commence this year.
• 240 Nassau St.: The public review process has begun for the proposed mixed-use project being developed by Alloy Development, the NYC Education Construction Fund (ECF), and GFB Development. The development team is seeking to rezone the site through ULURP to maximize the project’s housing and community benefit. The development aims to
• 95 Rockwell Pl.: The project by Charney Companies, which was originally intended to be 158 units, now plans to be 240 condo units. A density bonus is contingent on the developer making improvements to the nearby Nevins Street subway station. The project, which has pending approval and active foundation work underway, is expected to be completed in 2027.
• The Alloy Block Phase 2: Foundation work is scheduled to continue over the coming months at One Third Ave. The Alloy Block will be one of Brooklyn’s most sustainable developments, comprising the tallest Passive House building in the world, with over 1,000 units, including 200 affordable units, 60,000 square feet of office space, 50,000 square feet of retail, and two energy-efficient schools. The NYC Landmarks Preservation Commission (LPC) is considering designating 362 Schermerhorn St. - the school building built in 1889 - an individual landmark. The building was most recently occupied by Khalil Gibran International Academy (KGIA), which moved into a newly built space within the Alloy Block. A hearing is expected in March or April of this year.
• 205 Montague St: Landau Properties recently received $213M in construction financing for the planned mixed-use development at the former bank site. The development will include 46 condo units, 90 rental units, and 40,000 square feet of retail space. Demolition of the existing building has commenced.
yield 1,505 apartments, including 305 affordable and 95 senior housing units. Additionally, the project proposes a 120,000 square foot public school, 42,000 square feet of community space, and 28,000 square feet of retail. The site comprises PS 287 and the now shuttered Madison Square Boys’ & Girls’ Club–Navy Yard. The proposed community space will be run by an operator based on local resident feedback and will include tailored programming for neighborhood children, seniors, and families. Construction is expected to start sometime in 2027.
• 245 Duffield St.: Permits have been filed for a 30-story mixed-use building at 245 Duffield St, the site of a former Planet Fitness, recently purchased by Golden Stone Management. The proposed 450-foot-tall development will include 158 rental units. Demolition permits were filed in December 2025.
DEVELOPMENT
• 55 Smith St: The former Edison parking lot on Smith Street was recently acquired by CW Realty Group. Building plans were recently filed for a 22-story, 99 unit builting. Based on the area and
• 395 Flatbush Ave Ext: A new 72-story mixed-use building including 1,262 dwelling units, approximately 141,280 sq. ft. of commercial space, and 4,750 sq. ft. of open space is proposed at 395 Flatbush Ave by Rabina and Park Tower Group. The project, which would replace the 7-story office building built in 1972, is currently in the ULURP process, awaiting City Council approval to rezone the site from C6-4 to a C6-12 District to allow for additional FAR.
• 188 Duffield: The development team proposing restoration of the historic landmarked townhomes, and to build a new tower at the rear, has revised their plans following comments from the Landmarks Preservation Commission. The new plans propose private residential use within three of the townhomes, and no longer cantilevering the tower over the townhomes, which will keep the rear façades open. The team brought the new plans to LPC in early February for their review.
SALES
• 356 Fulton Street: Extell sold its shovel-ready development site at 356 Fulton Street to Rabsky for $43 million ($96/BSF). The site has 476,607 buildable sq. ft. of buildable square footage. Extell originally acquired the development rights through a ground lease worth $85.9M ($191/BSF) in June 2022 from the Feil Organization. The project, as originally proposed, qualifies for 421-a as foundation work began prior to the June 2022 deadline. The new owner has been very active in the Downtown Brooklyn market, having completed two major projects in the neighborhood last year: The Rocklyn at 625 Fulton Street, totaling 1,098 units, and 240 Willoughby Street, totaling 300 units.
• 55 Nevins St: Tankhouse purchased 55 Nevins St, which is currently an office building that has housed the NYPD’s Special Victims Division. New building permits have not yet been filed.
zoning of the site, it is believed that at least one more 99 unit building can fit on the property.
• 144 St. Felix: The long-vacant church next to One Hanson Place is slated for redevelopment and historic preservation. Local developer, Stretke, is planning to restore a portion of the exterior façade and construct a tower on the site, including 240 housing units, 25 of which will be affordable. The project is located within the Brooklyn Academy of Music Historic District and will abut the landmarked One Hanson Place. The development team recently revised their plans to reduce the bulk by 12 percent and expand restoration of the church following a January 13th meeting in which LPC expressed conditional support but called for revisions to better preserve the church.
• Pacific Park/Atlantic Yards: Development rights for the seven remaining Pacific Park sites were acquired by Cirrus Real Estate Partners and LCOR in early October, following prior developer Greenland USA’s default. The new venture contributed $12 million to an affordable housing fund as part of the transition. Once the rail yard platform over the MTA’s Vanderbilt Yard is built, the remaining 876 outstanding affordable units and the project’s long-promised public open space will finally be delivered. Empire State Development is currently conducting community engagement workshops and surveys, with a final report expected in February.
NEWS + UPDATES
New Incentive Programs Target Office Leasing
Downtown Brooklyn stands to benefit significantly from the City’s new Relocation Assistance Credit per Employee (RACE) for Space program, launched in 2025 to address citywide office vacancies. This firstcome, first-served pilot offers eligible out-of-state companies a $5,000 annual tax credit per employee, claimable over five years, to relocate to NYC and lease at least 10,000 square feet of qualifying office space. The program is capped at 3,000 total employment shares citywide, with no more than 500 per firm, and runs through June 30, 2028. Downtown Brooklyn is particularly well-positioned under RACE, as Brooklyn properties are exempt from the pre-2000 construction date requirement that applies to Manhattan, making the entire local office inventory eligible.
As part of the same Race for Space initiative, the City also extended the Relocation and Employment Assistance Program (REAP), which provides business income tax credits to companies relocating jobs from outside NYC or lower Manhattan to the outer boroughs, for an additional three years. For more information on benefits, qualifications, and applications, please visit the NYC Department of Finance website.
DOWNTOWN BROOKLYN AFFORDABLE HOUSING DEVELOPMENT (2019 - 2024)
Explore our explainer on affordable housing delivery in Downtown Brooklyn from from 2019-2024, with information on income band and unit type to show how different residents have been affected. We also examine the potential impacts of zoning changes under City of Yes and updates to state tax incentive programs such as 485-X.
DOWNTOWN BROOKLYN IN THE NEWS
“Fulton Street in Downtown Brooklyn Gets a Makeover”
- BKReader
“Brooklyn neighborhood now a hotbed of new homes with nearly 4.5K built in 2025 — a record year”
- New York Post
“A Michelin-Starred Taiwanese Dim Sum Restaurant is Coming to Downtown Brooklyn”
- BKMag
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“The now-defunct Macy’s in downtown Brooklyn has turned into a kaleidoscopic installation”
- Timeout
“Kashi Offers Indian Supper Club Fare in Downtown Brooklyn”
- The New York Times
“Beyond the availability of new homes, New Yorkers can find all the comforts of city living in Downtown Brooklyn”
- Streeteasy