The Brooklyn Navy Yard was proud to have posted a banner year for rental activity. The city-owned property signed new leases at a rapid rate in 2017. “We had significantly more leasing than in a normal year for the complex,” said David Ehrenberg, President and Chief Executive of the Brooklyn Navy Yard Development Corp., the nonprofit that runs the industrial property.
As reported by Crain’s NY, the Navy Yard leased roughly 440,000 square feet last year. Only about 140,000 square feet were renewals by existing tenants. Approximately 300,000 Square feet was taken by new companies or existing tenants expanding. The success can be attributed to the new opportunity of availability. The Navy Yard is known to have virtually no vacancies and a long waiting list for tenants. This past year, however, the property had new space to lease out. In November, the development corporation opened Building 77, a 1-million-square-foot property.
The non-profit spent close to $200 million renovating it over the past few years. The new space is already about 80% committed. Only 200,000 square feet is still available and it will likely be filled by the end of this year, said Ehrenberg. He boasted that they also successfully leased hundreds of thousands of square feet from departing tenants. The complex’s major allure is its affordability. Manufacturing tenants can rent the space for as low as the teens per square foot, said Ehrenberg. New tenants include Lafayette 148, a Manhattan-based fashion brand which leased about 100,000 SF, and National Elevator Cab & Door, which occupied about 50,000 square feet after considering a move to NJ.
By the end of 2018, the Brooklyn Navy Yard Development Corp. will need to perform the same magic again. Roughly 120,000 square feet of new office space is being developed, to create a new supermarket for Wegmans. Further, Admirals Row, a historic section of the Navy Yard is being redeveloped; they are completing Dock 72, a ground-up office building; an expansion of Steiner Studios is underway; and they will need to fill a new green manufacturing building. Ehrenberg estimates that the number of jobs at the Navy Yard will increase from the current 7,000, to 17,000 by the year 2020.
By: Hellen Zaboulani