BROOKLYN
MARKET REPORT
NEIGHBORHOOD TRENDS
DBP’s quarterly real estate report highlights Downtown Brooklyn’s strong Q1 2026 momentum, with 5.5 million visitors, 46K SF of newly leased retail space, a 130-bps YoY decline in office vacancy, and 465 newly built housing units—reinforcing its position as one of New York City’s most dynamic mixed-use hubs.
46K
9.4M
The Fresh Grocer Mixue
bps YoY office vacancy decline
Asking rent PSF (Q1) -130
$57.2
+23.9K
SF of newly leased office space (Q1)
Notable Openings and Announcements
1 JAY SUITES BROOKLYN
41 Flatbush Ave.
15,000 sq. ft. | Open Date: March 2026
Coworking space featuring 65 private offices + rooftop deck.
2 ONE WILLOUGHBY SQUARE
1 Willoughby Sq.
500,000 sq. ft. | 154,603 sq. ft. available
The building features newly built turnkey suites ranging from 2,000 to 10,000 sq. ft., with high ceilings, floor-to-ceiling windows, and rooftop amenities. Law firm Rubenstein Law recently leased 8,900 sq. ft.
3 MOXIE
PARTNERS
41 Flatbush Ave. (The Pioneer Building)
4,220 sq. ft. | Est. Opening: 2026
The real estate firm will open in this recently renovated Class A, 10-story office building.
4 THE MALIN BROOKLYN HEIGHTS
57 Court St.
15,000 sq. ft. | Est. Opening: May 2026
The coworking chain offers design-forward private offices, desks, and a library alongside tenants such as SoulCycle and Sephora in the building.
5 ARIZONA COLLEGE OF NURSING
540 Fulton St. (The Paxton)
40,000 sq. ft. | Est. Opening: TBA
+15K
SF of new coworking space (Q1)
The college will open its first New York State campus at ~$56 PSF, joining tenants including the NYC Department of Health and Mental Hygiene and Guitar Center.
6 141 WILLOUGHBY
141 Willoughby St.
400,000 sq. ft. | Open Year: 2023
BH3 and Capstone Equities has filed to convert 233,000 sq. ft. of office space in the 28-story Class A building into 200+ residential units—an initiative expected to reduce vacancy in the submarket.
7 175 PEARL STREET
175 Pearl St.
Current: 204,000 sq. ft. | Est. Opening: 2028 Watermark Capital Group is converting the historic eight-story office building into a 19-story multifamily development with nearly 200 condo and rental units, including 25% affordable housing under the 467-m program, which provides a 35-year tax abatement in exchange for reserving 25% of units as affordable housing.
Office Vacancy Eases as Rents Decline
Source: Cushman & Wakefield
82.8K
SF under construction office space
Vacancy declined 130 basis points yearover-year, from 22.2% in Q1 2025 to 20.9% in Q1 2026. Over the same period, asking rents fell 1.4% to $57.19 per sq. ft. The drop in vacancy may reflect recent leasing activity, including Jay Suites, and Rubenstein Law.
Since Q1 2024, asking rents have trended downward overall, while vacancy rose 0.7 percentage points in Q1 2025 before easing this quarter to just below Q1 2024 levels.
The Malin at 57 Court St.
1 Willoughby Square at 235 Duffield St.
$1,454
$4,829
Prices and Trends Continue Upwards Momentum
Sales
In Q1 2026, Downtown Brooklyn’s residential market saw robust growth, with quarterly average asking PPSF (based on monthly medians) for all unit types reaching $1,454 per sq. ft., up 3.3% year-over-year. Quarterly average asking prices for 1 BR units increased 5.2% and 2 BR units decreased 2.6%.
Rents
Quarterly average residential rents (based on monthly medians) rose 2% for studios, 5% for 1BR units, and 10% for 2BR units, for an overall increase of 7% year-over-year. 325
House 55: Completed in Jan 2026
Source: StreetEasy
Source: StreetEasy
TRANSPORTATION
30K
92.5K
9.4M
Downtown Brooklyn Foot Traffic Highlights Key Growth Areas
Pedestrian Trends (Placer.ai)
+50.5K
Overall foot traffic saw declines year-over-year as visitor traffic fell 4.9% and employee traffic 1.4%, but resident foot traffic continued its trend of growth with an 11.2% spike year-over-year. Brooklyn Commons saw a significant increase in foot traffic (+22.1%), but Fulton Mall (-12.1%), Court Street (-13.8%), Flatbush and Atlantic (-17.4%), and Livingston-Schermerhorn (-6.9%) saw year-over-year decreases.
Subway Ridership
In Q1 2026, Downtown Brooklyn subway stations saw a 0.5% year-over-year increase, with 561 more daily riders than Q1 2025. Stations seeing the most growth included Hoyt-Schermerhorn (+5.5%), DeKalb Av (+4.2%), and Nevins St (+4.2%).
Avg. Daily Visits by Visitor Type (Q1 2025 vs. Q1 2026)
Avg. Daily Pedestrian Visits by Location (Q1 2025 vs. Q1 2026)
Avg. Daily Subway Ridership (Q1 2025 vs. Q1 2026)
Source: Placer.ai
Source: Placer.ai
Source: MTA
DEVELOPMENT
NEWS + UPDATES
DBP Initiatives
Retail Dashboard - New Tool!
Click the image on the right to explore Downtown Brooklyn’s retail landscape with our brand-new Retail Dashboard—where you can dive into and interact with data on square footage, operating status, rents, and more!
Downtown Brooklyn In the News
Property Sale
“Downtown Brooklyn Emerges as Cultural, Entertainment Destination Following Residential Boom”
- Crain’s
“Tom Brady surprises students at Prospect Schools to celebrate his new sports cards store in Brooklyn”
- Brooklyn Bridge Parents
Email:
“Alloy Development announces Temple Square Plaza, a new public park in Downtown Brooklyn designed by Future Green Studio”
- The Architect’s Newspaper
130 ST. FELIX
Sale Price: $17 million
Site: 125,190 sq. ft. buildable area
Downtown Brooklyn As a Living Lab for AI-Driven
Retail Planning
A collaboration between NYU Tandon and the Downtown Brooklyn Partnership uses AI simulations to forecast foot traffic to new businesses before they open.
“In a Shuttered Macy’s, You Can Feel the Pulse of Fulton Street”
- The New York Times
DBP Initiatives
“Brooklyn, New York, Just Got a Brand-new Hotel With Skyline Views and an All-day Restaurant”
- Travel + Leisure
Proposed tower: 27-stories | 240 units
“City Council Approves 72-story Downtown Brooklyn Tower with 1,200+ Apartments” - 6sqft
Buyer: Quinlan Development Group
Seller: Gotham Organization
Previously purchased the site for $5.5M in June 2015 before receiving LPC approvals.
Downtown Brooklyn Partnership is a not-for-profit 501 (c)3 local development corporation that serves as the primary champion for Downtown Brooklyn as a
residential, and retail destination.
