DOWNTOWN BROOKLYN
Q3 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
27,276 Housing units completed since 2004
9
+57%
New businesses opened in Q3 2025
Rental inventory currently on the market compared to historical average, driven by new development
9.7M
158K
VISITATION
+9.8%
Subway ridership increase YOY
Pedestrain visits in Q3 2025
Citi Bike rides in Septmeber (6% YoY increase)
HISTORIC 2025 HOUSING DELIVERY Downtown Brooklyn has delivered an astounding 4,126 residential units so far in 2025, including 1,219 affordable units, with another 760 homes expected by the end of the year. View our Development Dashboard to learn more.
Downtown Brooklyn Partnership
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Q3 2025 Market Report | 1
COMMERCIAL OFFICE COMMERCIAL OFFICE LEASING Jay Suites, a co-working office operator, has taken over the 26,908-square-foot co-working space formerly operated by Spaces at the Pioneer Building (41 Flatbush Ave). Last year, Spaces assumed operation of the former JLL Orchard co-working office at 115 Myrtle Ave in Downtown Brooklyn.
Legal office, Brooklyn Defender Services, signed a lease for 15,914 square feet at 12 MetroTech. The non-profit also has an office at 177 Livingston Street.
COMMERCIAL OFFICE VACANCY + RENTS In the third quarter of 2025, office asking rents in Downtown Brooklyn increased 2.1% relative to Q2 to $58.71 per sq. ft. - a 1.6% increase year-over-year. Overall vacancies saw a slight decline to 22.2%, down 20 bps from the previous quarter and up 60bps from the same period last year. Downtown Brooklyn’s asking rents remain $2.31 per sq. ft. higher than those of Lower Manhattan. Vacancy in Lower Manhattan saw a 30 bps improvement over last quarter at 22.5%, comparable to the vacancy rate in Downtown Brooklyn. Midtown and Midtown South continue to command the highest rents at $75.58 and $83.06 per sq. ft., respectively.
Across Manhattan, all major submarkets have seen notable declines in vacancy rates over the past year, ranging from 140 to 190 basis points year-overyear, signaling strengthening conditions citywide. Against this backdrop, Downtown Brooklyn remains competitively positioned with relative affordability compared to Manhattan’s core office markets.
Overall Average Office Vacancy by Submarket Q3 2025
Q2 2025
Q3 2024
QoQ
YoY
Downtown Brooklyn
22.2%
22.4%
21.6%
-20 bps
60 bps
Lower Manhattan
22.5%
22.8%
24.4%
-30 bps
-190 bps
Midtown South
24.9%
25.1%
26.3%
-20 bps
-140 bps
Midtown
21.1%
21.8%
22.5%
-70 bps
-140 bps Source: Cushman & Wakefield
Overall Average Asking Rent PSF by Submarket Q3 2025
Q2 2025
Q3 2024
QoQ Change
YoY Change
Downtown Brooklyn
$58.71
$57.48
$57.80
2.1%
1.6%
Lower Manhattan
$56.40
$56.18
$55.40
0.4%
1.8%
Midtown South
$83.06
$81.31
$78.24
2.2%
6.2%
Midtown
$75.58
$76.13
$78.21
-0.7%
-3.4% Source: Cushman & Wakefield
Downtown Brooklyn Partnership
Q3 2025 Market Report | 2
RETAIL NEW RETAIL ACTIVITY Downtown Brooklyn saw nine new retail openings and several leasing announcements. These include: •
Din Tai Fung, the Michelin-starred Taiwanese restaurant chain famous for its soup dumplings, announced plans to take over 20,000 square-feet of retail space at the The Brook in early 2027. This will be the restaurant’s second New York City location, with the other location in Times Square. Adding to the recent wave of upscale Asian dining, sushi restaurant Sushi Koju, opened in the courtyard at Ace Hotel Brooklyn in September.
•
Grocery chain Aldi celebrated its grand opening at 625 Fulton Street on November 6th. The new supermarket is located on the ground floor of The Rocklyn and is now serving the neighborhood as next in a wave of grocery store openings. Familyowned grocery chain with locations primarily in New Jersey, The Fresh Grocer, will open it’s first NYC location at 523 Fulton in November. The long-anticipated opening will bring fresh produce, a specialty butcher, and gourmet groceries to Fulton Street. They will be located across the street from grocery chain Lidl, which opened last spring at 490 Fulton Street.
•
The Brooklyn Basketball Training Center, an 18,600 sq. ft. youth basketball facility, has begun operations at the former Modell’s space at 617 Pacific Avenue. The facility is run by BSE Global, the parent company of the Brooklyn Nets and the New York Liberty.
•
City Point continues to grow its retail mix with several new additions. American eyewear brand Warby Parker will open across from McNally Jackson on Prince Street, while Carnegie Diner will bring its all-day menu - including breakfast, brunch, lunch, dinner, and cocktails to the former Sixpoint space in DeKalb Market. They join Swarovski, the premium jewelry brand announced last quarter, along with new eateries such as Just Salad, Van Leeuwen, and Filipino restaurant Patok by Rach at DeKalb Market Hall, - all adding fresh energy to the neighborhood’s retail hub.
•
Cadet Athletic Performance, a locally owned sports training gym, plans to open its doors at 229 Livingston by the end of the year. The facility will offer programs for adults and kids.
•
Several new counter-service food & bev options are have either opened or signed a lease near Borough Hall. Qawah Time, an upscale Yemeni coffee shop, started serving customers in August at 66 Court Street. Taco Bell opened at 52 Court Street. Popular sub shop, Jimmy Johns, is preparing to open at 26 Court St. Additionally, taco and burrito restaurant, Dos Toros Taqueria, will open its second location in the neighborhood at One Boerum Place. The building is also adding Quickway Japanese Hibachi to its ground floor, which includes Chopt and Blank Street Coffee.
Din Tai Fung Coming to The Brook 567 Fulton St Basketball Training Center at 140 Flatbush Ave Downtown Brooklyn Partnership
Q3 2025 Market Report | 3
RETAIL As of Q3 2025, Downtown Brooklyn had 565 active businesses and 157 vacant storefronts, resulting in a retail vacancy rate of 20.3%. Vacancy rates differ by sub-district, with Fulton Mall reporting a 21.6% vacancy rate, MetroTech 22.6%, and Court-Livingston-Schermerhorn having 16.7%.
RETAIL CORRIDOR RENTS
According to a recent REBNY report, retail rents along Downtown Brooklyn’s key shopping corridors have adjusted significantly since late 2023, creating new opportunities for emerging retailers and innovative concepts to enter the market at more sustainable rates. Fulton Street rents are now 33% lower (to $165/sq. ft.) and Court Street 49% lower (to $100/sq. ft.) than in 2023, reflecting a broader market correction. Since 2024, average rents aredown 6% on Fulton Street and 31% on Court Street. As foot traffic steadily recovers toward pre-pandemic levels, Downtown Brooklyn is positioned for a new wave of retail investment and tenant diversity. The closure of legacy retailers such as Macy’s, TJ Maxx, Nordstrom Rack, Regal Cinemas, and Barnes & Noble underscores the district’s ongoing transformation, opening the door for a refreshed mix of experiences, services, and brands that reflect the neighborhood’s evolving nature.
RESIDENTIAL
RESIDENTIAL RESIDENTIAL SALES
In the third quarter of 2025, the median asking price per residential square foot in Downtown Brooklyn was $1,370, an increase of 13.5% year-over-year. • •
The median asking price per sq. ft. for 1-bedroom apartments in Downtown Brooklyn was $1,269 this quarter, 1% higher than both last quarter (Q2 2025) and the same quarter last year (Q3 2024).
For 2-bedroom units, the median asking price per sq. ft. was $1,309, which is an 8.8% decrease from last quarter and a 9.8% increase year-over-year.
Median Residential Sale Price Per Square Foot, Downtown Brooklyn 1-Bedroom 2-Bedroom All Sizes
Q3 2025
QoQ Change
YoY Change
$1,269 $1,309 $1,370
1.2% -8.8% -1.6%
0.6% 9.8% 13.5%
RESIDENTIAL RENTALS
In September 2025, the average residential rent in Downtown Brooklyn was $4,899 across all unit types, a 3.7% increase year-over-year. Studio and onebedroom units saw price increases of 2.1% and 2.3%, respectively, while two-bedroom units experienced a more significant year-over-year rise of 5.7%. September 2025 Studio One Bed Two Bed Average
Downtown Brooklyn Partnership
Source: StreetEasy
Downtown Brooklyn (3.7%) and its surrounding neighborhoods - Fort Greene (12.5%), Boerum Hill (7.4%), and Cobble Hill (6.8%) - saw year-over-year increases in average rents, while DUMBO (-1.7%) and Brooklyn Heights (-0.1%) experienced declines.
Average Rent
September 2024 change
September 2023 change
$3,742 $4,510 $6,445 $4,899
2.1% 2.3% 5.7% 3.7%
5.1% 2.6% 3.2% 3.4%
Source: MNS Real Estate NYC
Q3 2025 Market Report | 4
TRANSPORTATION PEDESTRIAN + VISITATION TRENDS (VIA PLACER.AI)
Data from Placer.ai shows that visits to Downtown Brooklyn in Q3 2025 are 17% below 2019 levels. Recovery varies by visitor type. Due to housing growth, residential foot traffic is 85% above prepandemic levels. Employee traffic, however, is 20% below pre-pandemic levels, down 3.8% and year-over-year. Visitor foot traffic (non-residents or employees) is down 17% from 2019 levels, a 0.6% decline year-over-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 20% higher than September 2024. Brooklyn Commons foot traffic is now nearly 96% recovered to September 2019 levels.
•
Court Street and Fulton Mall also saw significant year-over-year improvements in foot traffic, with Court Street up 3.7% and Fulton Mall up nearly 6% compared to last September. In terms of pandemic recovery, Court Street and Fulton Mall foot traffic levels are 62.7% and 93.2% of September 2019’s numbers, respectively.
•
Livingston-Schermerhorn and Flatbush + Atlantic saw decreases in visitation, with declines of 10.3% and 8.8%, respectively. LivingstonSchermerhorn foot traffic is 73.4% of September 2019 levels, and Flatbush + Atlantic is at 82.1%.
Downtown Brooklyn Foot Traffic Recovery by Visitor Type
Source: Placer.ai
Downtown Brooklyn Average Daily Visits by Area, September 2019-
Source: Placer.ai. Data includes visits of over 10 minutes to each area, including visitors, employees, and residents
Downtown Brooklyn Partnership
Q3 2025 Market Report | 5
TRANSPORTATION PARKS + PLAZA ACTIVITY (VIA MRI ONLOCATION) Foot traffic in Downtown Brooklyn’s parks and plazas continues to show strong activity. Trends in September 2025 show: •
Jay St + Brooklyn Commons saw average weekday visits between about 29,000 and 37,000 daily. Activity tended to peak at 5 p.m., with additional spikes in foot traffic at 8 a.m. and 12 p.m.
•
Willoughby Plaza is experiencing between 8,000 and 13,500 pedestrians each day on average, with Tuesdays being the most active. Hourly foot traffic peaked around 1 p.m.
•
The Plaza at 300 Ashland saw between 8,000 and 11,000 visitors a day, with Friday being the busiest day of the week. The plaza was typically most active around 5 p.m.
•
Daily visits to Albee Square were between 11,000 and 16,000 on average, with pedestrian activity peaking on Fridays. 5pm tended to be the busiest at Albee Square in September.
•
Abolitionist Place experienced between 3,500 and 6,500 daily pedestrians, seeing the most activity on Fridays. The park was most active around 4 p.m.
Downtown Brooklyn Daily Foot Traffic by Location by Day, September 2025
Downtown Brooklyn Average Foot Traffic by Location by Time of Day, September 2025
Downtown Brooklyn Partnership
Q3 2025 Market Report | 6
TRANSPORTATION SUBWAY RIDERSHIP In September 2025, subway ridership across Downtown Brooklyn increased significantly, rising 9.8% yearover-year, with over 10,000 additional daily subway trips compared to September 2024. Overall, ridership recovered to 76% of pre-pandemic levels during the month. Takeaways include: •
•
Hoyt-Schermerhorn (A,C,G) experienced an impressive 24% increase, with over 1,700 more daily rides compared to September 2024. This may be due to the G line train service being shut down through the summer of 2024 and resuming a few days into September 2024. DeKalb Avenue (B,Q,R) saw a 12% increase, also adding around 1,700 more daily rides. This station
has experienced double-digit growth throughout the year, likely a result of the opening of the Brooklyn Paramount, along with residential growth nearby. •
Other Downtown Brooklyn stations also saw yearover-year growth, including Atlantic Ave/Barclays (2, 3,4,5,B,D,N,Q,R) at 9.5%, Nevins St (2,3,4,5) at 9%, and Borough Hall/Court St (2,3,4,5,R) at 8.5%.
•
Hoyt-Schermerhorn (A,C,G) led in pandemic recovery, reaching 86% of pre-pandemic ridership levels.
•
All subway stations in Downtown Brooklyn have now surpassed 65% of pre-pandemic daily ridership.
Downtown Brooklyn Average Daily Subway Ridership by Station, September 2019-2025
Source: MTA
CITI BIKE RIDERSHIP In September 2025, Citi Bike ridership in Downtown Brooklyn jumped 6% YoY with over 158,300 rides – a 8,600 increase. On average, there were an additional 454 riders per station compared to September 2024. Stations seeing the largest growth most notably includes Schermerhorn St. & Court St, which saw a 132% increase due to the newly installed bike lane on Court Street, as well as the removal of the Court St + State St Citi Bike station.
Sep 2025
Sep 2024
YoY Change
Schermerhorn St & Court 12,443 St Willoughby St & Ashland 3,677 Pl
5,359
132%
2,410
53%
State St & Smith St
6,801
5,393
26%
3 Ave & Schermerhorn St
6,683
5,508
21%
Hanson Pl & Ashland Pl
20,280
17,758
14% Source: CITI BIKE
Downtown Brooklyn Partnership
Q3 2025 Market Report | 7
DEVELOPMENT DEVELOPMENT OVERVIEW As of Q3 2025, Downtown Brooklyn development includes: • • •
166 projects completed since the 2004 rezoning, including 27,276 residential units (of which 5,973 are affordable), 2.8 million sq. ft. of office space and 2.6 million sq. ft. of retail. 12 projects under construction, including 2,414 residential units (471 of which are affordable) and 73.5K sq. ft. of retail. 24 projects planned, including at least 4,021 residential units (of which 946 will be affordable).
Recently Completed •
•
•
•
89 DeKalb Avenue: RXR’s 30-story, 324-rental unit mixed-use development is complete. The fully electric project includes 98 affordable units and 55,000 sq. ft. of academic and office space at the base for Long Island University. Residential units in the building are leasing for November 15th and December 1st start dates. The Brook 565 Fulton Street: Witkoff and Apollo have completed a portion of their residential tower and are currently leasing out some of its 591 units. Work on the project’s ground floor retail space is still ongoing, which will include the 20,000 sq. ft. lease to Michelin-star Taiwanese restaurant Din Tai Fung. The Everly / 180 Ashland Place (formerly 98 DeKalb Avenue): Rockrose’s 49-story residential building with 569 units (171 of which are affordable) completed construction and is actively leasing.
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One Fifty Lawrence Street: The Twin Group Associates’ 25-story, 100-unit residential building is complete. The development has 8,200 sq. ft. of retail space on the market.
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570 Fulton Street: Developing NY State’s 163-unit project, located across from the BRIC House, has been completed.
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One Nine Rockwell: Brookstone Developers’ 27-story building with 174 rental units, including 53 affordable units is complete.
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Modavie / 88 Schermerhorn Street: The Jankos Group project with 58 residential units (17 affordable) has been completed.
•
540 Atlantic Avenue: The 154-unit multifamily development by JCS Realty Group is complete and is currently marketing units.
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55 Willoughby Street: Interior work continues 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. Completion is expected by the end of 2025.
•
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. Located at 71 Prince Street, the project is nearly complete and currently undergoing interior work. It is expected to be completed in early 2026.
The Rocklyn / 20 Rockwell Place (formerly 625 Fulton Street): Rabsky’s residential tower featuring 1,044 units (331 affordable) has finished construction. Grocery store chain, Aldi, is occupying the building’s ground floor.
Ongoing Construction •
The Alloy Block Phase 2: Foundation work has begun at One Third Avenue. The project will be a mixed-use tower rising above two historic buildings and include 538 residential units—152 of them affordable—along with six floors of office and retail space along Third Avenue and Schermerhorn Street. Two historic buildings at the site will be restored for community-focused retail. 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. Downtown Brooklyn Partnership
Q3 2025 Market Report | 8
DEVELOPMENT •
362-370 Livingston Street: Developing NY State is continuing foundation work to make way for three proposed 22-story buildings totaling 296 residential units and 7,162 sq. ft. of retail space.
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275 Flatbush Ave Ext: The 450 residential unit project by the Jay Group has topped out. The project will include 112 affordable units in 5 separate buildings at 275 Flatbush Avenue Extension.
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•
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170 Remsen Street: Demolition is complete on Rockrose’s development at the former St. Francis College campus for all buildings aside from the landmarked building. The project is set to include 747 residential units across three buildings and groundfloor retail.
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95 Rockwell Place: Excavation for the foundation is nearly complete at Charney Companies’ 43-story, 158-unit residential building. The project is expected to be completed in 2027.
285 Schermerhorn Street: Façade work is nearly complete on the 14-story, 129-unit residential project designed by GF55 Architects and developed by • Urban Development Partners. The project is expected to be completed in 2026. 291 Livingston Street: The JdV by Hyatt hotel project with 103 rooms is expected to open in December. The first Hyatt hotel in Brooklyn, plans include a restaurant on Grove Alley, a cafe on Livingston and a rooftop bar.
Brooklyn Borough Jail Facility: Construction of the new jail facility on the block of Atlantic Ave, Boerum Pl, Smith St and State St continues. The $3 billion project will include over 1,000 male beds and 30,000 square feet of community facilities and is projected to be completed in 2029.
Recently Announced •
395 Flatbush Ave Ext: A 72-story mixed-use building including 1,262 dwelling units, approximately 141,280 square feet of commercial space, and 4,750 square feet 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 to rezone the site from C6-4 to a C6-12 District to allow for additional FAR.
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188 Duffield: On the site of the landmarked Duffield houses, Developer Watermark Capital proposed • combining the interiors of the historic homes to create an entrance, partially reconstructing the roofs, interior walls, and rear facades, and erecting a 33-story residential tower behind them. At the Landmarks Preservation Commission (LPC) hearing in October, commissioners and members of the public unanimously voiced objections to the plans due to concerns over the proposed alterations of the historic buildings. LPC and the developers are to review options based on the concerns and determine next steps.
Downtown Brooklyn Partnership
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144 St. Felix: Strekte is seeking Landmarks Preservation Commission (LPC) approvals for the redevelopment and historic preservation of the long vacant Central United Methodist Church, which is located within the BAM Historic District. The developer is planning to restore the exterior façade and construct a 27-story tower on the site, including 240 housing units, 25% of which will be affordable. The development team is currently going through the LPC approval process. 673-695 Fulton Street: Borough Developers signed a 99-year ground lease valued at $1.4M annually at 673-695 Fulton Street. The developer plans to build an 81,000- square-foot building with rental apartments and ground floor retail.
Q3 2025 Market Report | 9
DEVELOPMENT SALES •
Jay Street, Willoughby Street, and Lawrence Street Assemblage: United American Land has secured the remaining sites at its assemblage of the block with the purchases of 385 Jay St, 387 Jay St, and 48 Willoughby St for $14.5 million. It is estimated that the assemblage could yield over 700,000 square feet of development rights, making it one of the largest developments in Downtown Brooklyn.
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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 square feet of buildable square footage. Extell originally acquired the development rights through a ground lease worth $85.9M ($191/BSF) in 2022 from the Feil Organization. The project, as originally proposed, qualifies for 421-a as foundation work began prior to the June 2022 deadline. Rabsky has been very active in the Downtown Brooklyn market, having completed two major projects in the neighborhood this year: The Rocklyn at 625 Fulton Street, totaling 1,098 units, and 240 Willoughby Street, totaling 300 units.
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Pacific Park: Development rights for seven Pacific Park sites were recently acquired by Cirrus Real Estate and LCOR in early October, with the venture contributing $12 million to an affordable housing fund. The new developers plan to construct the remaining 876 affordable units needed to complete the Pacific Park project.
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245 Duffield Street: Queens-based developer, Golden Stone Management, purchased the former two-story Planet Fitness building for $31 million. The firm recently filed demolition plans to make way for a new tower containing condominiums. There are 100,056 square feet of development rights.
NEWS + UPDATES DOWNTOWN BROOKLYN IN THE NEWS $8M upgrades help revitalize streetscape along the Fulton Mall
Downtown Brooklyn on pace for its biggest year for housing yet - Crains
- News12 Brooklyn
This Michelin-starred dumpling eatery is opening another location in NYC—this time in Brooklyn
- Time Out
World’s tallest Passive House building in Brooklyn secures $535M in financing - 6sqft
Downtown Brooklyn Partnership
Pacific Park gets new development team, $12M for affordable housing fund - The Real Deal
Brooklyn Media Nonprofit BRIC Secures Permanent City Funding - BKReader
Q3 2025 Market Report | 10