Office business booming in Brooklyn.With Manhattan rents steadily rising and space becoming more limited, employers have been making the move over the bridge to downtown Brooklyn Downtown Brooklyn is the third largest central business district in New York City (following Midtown Manhattan and Lower Manhattan), and is located in the for their office space. "It's safe to say that the office market in Brooklyn is getting hot and hotter," Timothy D. King, senior partner at Massey Knackal said. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the latest quarterly report from Marcus & Millichap, Brooklyn is on the cusp of a major transformation as more residential and mixed-use buildings are constructed, particularly in the downtown area. "Downtown Brooklyn is the place where the most development is made besides downtown Manhattan and the lower west side," said Joe Chan, president of the Downtown Brooklyn Partnership, a local development corporation overseeing the revitalization re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. of Downtown Brooklyn. Downtown Brooklyn, noted Chan, is seeing a "historic period of growth," as the area is the third largest business district in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . He added that there are $9 million worth of local investments, 14,000 apartment units on the way, 1,250 hotel rooms slated, 1.5 million square feet of office space and 1.6 million square feet of retail space in the works. According to King, with a number of Class B office spaces being converted to residential, the office supply has diminished, thus escalating the demand and value of existing space. J.D. Parker, regional manager of Marcus & Millichap's Brooklyn office, said the value of downtown Brooklyn office space is a major selling point selling point n. An aspect of a product or service that is stressed in advertising or marketing. Noun 1. selling point - a characteristic of something that is up for sale that makes it attractive to potential customers . "Brooklyn becomes attractive when you have office space in Manhattan in the $80 psf range," he said. Class A office space in Brooklyn is going in the mid to upper $30s psf and subletting The leasing of part or all of the property held by a tenant, as opposed to a landlord, during a portion of his or her unexpired balance of the term of occupancy. A landlord may prohibit a tenant from subletting the leased premises without the land-lord's permission by is in the low $30s, Glenn Markman, executive director of Cushman & Wakefield, added. The lower rates are attracting legal firms, record labels, media companies and other industries in the creative fields to relocate to the borough from Manhattan. "This is just the beginning. I really believe this is going to be a paradigm shift A dramatic change in methodology or practice. It often refers to a major change in thinking and planning, which ultimately changes the way projects are implemented. For example, accessing applications and data from the Web instead of from local servers is a paradigm shift. See paradigm. ," Markman said. "Companies will begin to move some functions of operation into the borough that don't need to be in Manhattan." Although most of downtown Brooklyn's growth involves renovations of existing buildings, King, along with other industry professionals, is confident that developers and wellnoted architects will begin building in the near future. "The pipeline will open for new construction," he said. "We're right at the tipping point The point in time in which a technology, procedure, service or philosophy has reached critical mass and becomes mainstream. See network effect. See also tip and ring. ." A major sign that downtown Brooklyn is on the path to significant growth is S.L. Green's recent $107.5 million purchase of 16 Court St. "If the largest commercial landlord in Manhattan is interested, then there must be something good going on in Brooklyn," said Parker, who noted that he currently had 25 properties in contract in the area. Industry insiders credit the 2004 rezoning of downtown Brooklyn that allowed for the construction of more residential and mixed-use buildings, as opposed to just commercial, for the current resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. . As more residential buildings were constructed, an influx of educated professionals moved into the area, with higher-end retailers and business following. In addition to the rezoning, Chan credits government-funded business incentive programs. Among such incentives, corporations looking to bring operations to Brooklyn can qualify for a city corporate tax credit of $3,000 per employee, a property tax exemption tax exemption, immunity from the requirement of paying taxes. Federal, state, and usually local law provide exemption from taxation for a wide variety of organizations, usually not-for-profit, such as churches, colleges, universities, health care providers, various and an energy tax reduction "that could equal $12 to $16 psf in reductions," he said. |
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