Economy makes Brooklyn the latest hot spot for retail.

Drawn by a strong economy, affluent residential neighborhoods and a growing business community, major and specialty retailers have flocked to Downtown Brooklyn over the past few years. In addition, leasing activity has heated up tremendously over the past year, as evidenced by a rush of major retailers, who are moving into the area's remaining prime retail sites.

The lure of Downtown Brooklyn is its tremendously diverse economy. It serves as a hub of corporate, academic, medical and governmental activity. More than 200,000 people come to the streets of Downtown Brooklyn every workday. This includes more than 45,000 who attend five colleges plus some of the best private schools serving Lower, Middle and Upper grades and well as numerous public schools. It is home to major commercial and financial firms employing more than 50,000 workers. Some of the major firms include Chase Financial Services, SIAC, KeySpan, Morgan Stanley, Bear Steams, Verizon and Con Edison.

In addition, government and legal institutions draw tens of thousands of people into the area each day, including 10,000 jurors each week. Add to this a growing number of affluent residents from such brownstone neighborhoods as Brooklyn Heights, Boerum Hill and Fort Greene and a vibrant cultural scene, and it is easy to understand why Downtown Brooklyn has become a signature address for a variety of retailers.

While retail has been flourishing throughout the region, the most conspicuous activity has centered on Court and Montague Streets. In the past year, 17 new retail locations, encompassing close to 100,000 square feet, have leased, opened or are about to open. This does not include the jewel in the crown -- the Regal Cinemas, a 12 screen, 2,500-seat multiplex theater on Court Street.

The specter of a major theater drawing customers from throughout the city has spurred additional major retailers to open stores in the area. The most prominent of these retailers are Barnes & Noble, which opened a 21,000 square foot mega-store in conjunction with the theater in July; CVS Pharmacy, which opened a 12,000 square foot store in January; and New York Sports Club, which recently signed a lease on a 16,500 square foot facility. All of these retail spaces are located on Court Street.

In addition, Garden of Eden -- an upscale grocery store, Bank of New York and Innovative Audio, a high-end electronics store, all are expected to open before the New Year on Montague Street. AT&T Wireless has opened a 3,500 square foot facility on Cadman Plaza West.

The retail boom has been no less robust in DUMBO, the waterfront area between the Brooklyn and Manhattan Bridges. An array of retailers has been attracted by the burgeoning live-work environment, which has added both residents and employees to the area. Recent lessees have included Kino Restaurant, Peas and Pickles -- a gourmet grocery, Shearer Frameworks, Le Blanc et Rouge -- a wine and liquor store, as well as a chocolate factory, custom-built furniture store and a pet shop. Combined, these retailers have taken more than 50,000 square feet of space.

At 314 Atlantic Avenue, a street renowned for its antique stores, the Axelle Fine Arts Galerie Brooklyn celebrated its grand opening last month. The retailer, which is now occupying 4,000 square feet for its gallery as well as its headquarters, relocated from Soho. This move is a further demonstration of a changing perception among retailers of Downtown Brooklyn.

In addition, a number of retailers, including prominent restaurants, realtors, boutiques and bookstores, have been attracted which have been drawn by BAM's cultural fare, to the area surrounding the Brooklyn Academy of Music. They have been drawn particularly by BAM's cultural fare. In all, 14 separate retailers, including the Corcoran Group, Indigo Cafe and Books, and MoBay Restaurant have opened in the past six months or will open in the coming six months.

Undoubtedly, major and specialty retailers have come to view Downtown Brooklyn as a signature address. Here, they have found cheaper rents than in Manhattan and the ability to draw a large customer base created by growing numbers of residents, employees and others who frequent the area each day.