Research Report

Report: New York City

Brooklyn
Office
Q1 2024

Accelerating success.
Brooklyn Office Report

Brooklyn’s leasing activity increased Brooklyn Market Indicators

more than 50.0%, quarter over quarter.
Meanwhile, the availability rate tightened Q1 2023 Q4 2023 Q1 2024

with negative absorption as the asking Availability Rate 22.3% 22.8% 21.5%
rent average was lower since Q4 2023.
Average Asking Rent
$51.33 $51.77 $50.31
Leasing volume grew more than 50.0% ($/SF/YR)

Leasing Activity (SF) 446,502 135,035 206,515

After leasing volume fell 77.8% during the fourth
quarter – mostly due to a lack of any leases Net Absorption (SF) (805,704) (253,450) (388,471)
greater than 20,000 sq. ft. – Brooklyn’s Q1 2024
leasing activity totaled 0.21M SF. This was a 50,000+ SF Relocations and Expansions from
52.9% increase since the prior quarter, but a Manhattan to Brooklyn | Q1 2020-Q1 2024
53.7% cut in demand, year over year. Brooklyn’s
Qtr/Yr Tenant New Location Size (SF)
Q1 2024 leasing volume also fell shy the 0.32M SF
rolling quarterly average volume (Q4 2019-Q1
Q1 2020 City Harvest 150 52nd Street 150,000
2024).
New York
Q1 2022 140 58th Street 79,000
Whereas the largest transaction to close in the Embroidery Studio
prior quarter was Safe Horizon’s 20,000-sq.-ft. Union Square
Q4 2020 147 41st Street 70,000
lease at 41 Flatbush Avenue, Brooklyn’s biggest Events
lease during Q1 2024 was Pratt Institute’s 63,000- Boston Consulting
Q1 2023 55 Water Street 67,000
sq.-ft. new lease at Dock 72 in the Brooklyn Navy Group
Yard submarket. Other notable leases included
Q3 2020 Mother 94 Ninth Street 61,000
Bedford Stuyvesant New Beginnings Charter
School’s 51,000-sq.-ft. new lease at 215-217
North 10th Street in the Williamsburg/ Average Asking Rent by Submarket
Greenpoint submarket and Cresilon’s 33,000-sq.- Q1 2024 Q4 2023 Q1 2023
ft. expansion at 220 36th Street in Industry City. $80

Average asking rent lower by 2.8% $70

Brooklyn’s asking rent average was cut by 2.8% $60

$64.53
$64.05
$63.43
$63.11

$62.02
since December 2023 to $50.31/SF and was 2.0%
$58.32

$58.32
$57.56
$57.30

$50
below the $51.33/SF average one year ago. The
Asking Rent (S/SF)

decrease in pricing during the quarter was mostly

$46.98
$46.47

$45.38

$40
attributed to the removal of the above-average
$43.05
$42.86
$41.51

$40.89
$40.41
$39.53

priced blocks of space leased at Dock 72 and 215- $30

217 North 10th Street as 44,000-sq.-ft. of above-
$28.29

average priced sublet space was also withdrawn

$26.14
$26.00

$20
from the market at 175 Pearl Street. Additionally,
sizable blocks of below-average priced space $10
were listed at 151 Lawrence Street (108,000 sq.
ft.) and 185 Marcy Avenue (49,000 sq. ft.). There $0
were also instances of lower-repricing in the
borough.

The Class A asking rent average was lower by

1.6% to $60.57/SF as the Class B asking rent

Source: Colliers

Research Report | Q1 2024 | New York City / Brooklyn 2

Brooklyn Office Report
average grew by 0.6% to $35.65/SF. Furthermore, the Class
C average was reduced by 2.1% to $35.67/SF.
The sublet asking rent average dwindled by 6.3% since Q4
2023 to $43.97/SF. The price change was influenced by the
removal of the above-average priced block at 175 Pearl
Street as well as below-average priced sublet space listed
at 630 Flushing Avenue (35,000 sq. ft.). Moreover, the direct
asking rent average decreased by 2.6% during the quarter
to $50.72/SF. While the discount of sublet space to direct
space in Manhattan was 26.4%, the margin in Brooklyn was
a narrower 13.3%.
last 24 months was negative 1.25M SF and was a departure
from the 125,000-sq.-ft. of positive absorption during the
preceding two-year period.
Four of Brooklyn’s submarkets recorded cuts to their
availability rates, quarter over quarter. Industry City’s 5.0
pp decrease to 18.5% was the sharpest availability rate
reduction during the quarter. Meanwhile, the 1.3 pp gain
in Red Hook/Gowanus to 26.9% was the biggest increase in
supply thanks to 33,000 sq. ft. listed at 80 Richards Street.
However, DUMBO/DUMBO Heights ended the quarter with
the highest availability rate, at 35.8%.

Industry City’s 0.5% average asking rent increase to Sublet space represented 6.9% of Brooklyn’s overall
$26.14/SF was the only pricing growth within Brooklyn’s availability – up from 6.1% during the prior quarter – while
seven submarkets during the first quarter. Meanwhile, the Brooklyn’s sublet supply expanded by nearly one-sixth
DUMBO/DUMBO Heights submarket had the sharpest during Q1 2024 to a total of 0.69M SF. Although the net
quarterly drop in pricing – at 7.6% to $58.32/SF – after sublet availability in Brooklyn grew by 30.7% since March
lower-repricing took place within the submarket. 2020, it was far less than Manhattan’s 73.8% increase
during the same period.
At $65.02/SF, Brooklyn’s post-2000 asking rent average
grew by 0.4% since December 2023, primarily influenced
by the below-average priced blocks of space leased at Dock Availability Rate by Submarket
72 and 215-217 North 10th Street. As of Q1 2024, Q1 2024 Q4 2023 Q1 2023
Brooklyn’s post-2000 inventory was priced at an 11.6% 40%
discount to Lower Manhattan’s post-2000 inventory
($73.55/SF), a 25.7% discount to Midtown’s ($87.54/SF) and 35%

37.0%
35.8%
a 51.3% discount to Midtown South’s ($133.45/SF).

35.5%
30%
There were six contiguous blocks of space greater than

28.2%
250,000 sq. ft. in Brooklyn and was unchanged since Q4 25%

26.9%

26.9%

26.6%
Availability Rate (%)

25.6%
2023. Pricing for these large blocks decreased by 5.2%

23.6%
23.5%
since Q4 2023 to $62.34/SF, a 23.9% premium to the 20%

22.4%
21.8%
21.2%
20.4%

market average compared to 27.0% in Q4 2023.

19.3%

18.5%
15%

Notable cut in sublet supply

14.7%
10% 12.9%
9.1%
9.2%

Brooklyn’s availability rate tightened by 1.3 pp (percentage

5%
points) since the prior quarter to 21.5%. However, the
3.9%

tightening of availability was primarily due to an increase in

0%
Brooklyn’s inventory at year-end 2023 as Brooklyn’s total
availability was 10.06M SF, up from 9.67M SF three months
earlier. Nonetheless, unlike Manhattan’s available supply
increasing by 81.6% since Q1 2020, Brooklyn’s total
availability expanded by a more modest 12.6% during the
same period. Absorption in Brooklyn during Q1 2024 was
negative 0.39M SF as Brooklyn’s net absorption over the
Source: Colliers

Top Five Lease Transactions of Q1 2024

Tenant Location Size (SF) Transaction Type
Pratt Institute Dock 72 62,570 New
Bedford Stuyvesant New
215-217 North 10th Street 51,498 New
Beginnings Charter School
Cresilon 220 36th Street (Bldg. 5-6) 33,204 Expansion
Highline Commerce 24 32nd Street (Bldg. 7-8) 15,311 Expansion
The Corcoran Group 1 Pierrepont Plaza 12,807 Extension
Source: Colliers

Research Report | Q1 2024 | New York City / Brooklyn 3

 66
Contributors
Franklin Wallach
Countries Executive Managing Director, New York
+1 212 716 3603
franklin.wallach@colliers.com

$4.3B
Chemerie Cheng
Managing Director, New York
+1 212 716 3829
In revenue chemerie.cheng@colliers.com

Brennan Yerman
Research Manager, New York

2B
+1 212 716 3686
brennan.yerman@colliers.com

Benjamin Liptscher
Square feet under management
Senior Research Analyst, New York
+1 212 716 3578
benjamin.liptscher@colliers.com

19,000
Professionals

Colliers’ statistical sample set for Brooklyn totals 46.85M SF and includes all commercial office
properties with at least 25,000 sq. ft. of office space/light manufacturing space within the
submarket borders. Colliers’ availability rate includes only space scheduled for tenant build-out
within 12 months. In tracking leasing activity, Colliers includes all lease types greater than 5,000 sq.
ft.: renewals, expansions, relocations, and the occasional sale-leaseback.

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