CPEX Real Estate is pleased to present our an- Crain’s New York Business; Downtown Brooklyn Partnership; nual Brooklyn Retail Report for 2015, a compre- NYC MTA; New York Daily News; StreetEasy; The Real Deal; U.S. hensive survey of the primary, secondary, and Census Bureau; and the Wall Street Journal). tertiary retail corridors throughout the borough. Considering the dynamics of the Brooklyn retail market and the The 2015 CPEX Brooklyn Retail Report is com- overall economic conditions, these pricing levels are not only sub- piled by the CPEX Retail Leasing Team, with ject to change, but will most likely fluctuate as various market con- assistance from our research and graphics ditions, supply, demand, as well as economic indicators change departments. Once again, 2015 reveals a tale from quarter to quarter. While the actual pricing levels may change of two Brooklyns; Southern Brooklyn didn’t in the coming months, this report can be an important tool for leas- undergo as much expansion or appreciation, ing comparisons, for calculating percent changes across neighbor- while north of Prospect Park saw a significant hoods and boroughs, and for quantifying Net Operating Income spike in density. In this latest version, we have levels in estimating cap rates and performing property valuations. identified 27 additional retail corridors from This report can assist property owners and business owners with a the previous year’s report to account for the current and up-to-date synopsis of their market place. rapidly expanding retail scene in flourishing neighborhoods like Park Slope, Williamsburg, and Crown Heights – home to the most cor- ridors in the borough. This brings the total number of significant retail arteries in the borough to 121, nearly double the total from just two years ago. From 2014, six corridors expanded, four thoroughfares were divided to account for certain sections com- manding higher rents, and 15 saw enough of an increase in pricing to jump to the next tier in average price per square foot. For retail landlords and tenants with specific site analysis require- ments, please note that each and every property provides unique Careful attention has been paid to summarize characteristics which affect its potential lease pricing levels. Char- the current market conditions. The pricing for acteristics such as location, size, build-out, neighboring tenants, each corridor provided is an estimate and a available transportation, street conditions, residential density, snapshot of the current period, based on the traffic, etc., all have an important impact on contracted leasing data collected from internal and external sourc- rates. As the economic market impacts the retail industry, we es, including: CPEX completed transactions, at CPEX will continue to monitor such changes and make them market reports from our in-house research, ap- available to our clients. Please call us if you have any questions praisers, and various data resources (Brown- regarding this report or if you require further information pertain- stoner.com; Commercial Observer; CoStar; ing to your real estate or business. INTRODUCTION

The CPEX New York Retail Leasing Team

Timothy D. King Ryan Condren George Danut Keat Chew Managing Partner Managing Director Associate Director Associate [email protected] [email protected] [email protected] [email protected] (718) 687-4210 (718) 687-4212 (718) 687-4220 (718) 687-4209

WWW.CPEXRE.COM 2015 BROOKLYN RETAIL CORRIDOR MAP 2015 BROOKLYN RETAIL CORRIDORS

1 3rd Ave Bay Ridge Ave 97th Street 61 Flatbush Ave Atlantic Ave St. Marks Ave

TOP THREE67 CORRIDORS NEIGHBORHOODS N 2 3rd Ave Atlantic Ave Union St 62 Flatbush Ave St. Marks Ave 8th Ave RETAILIN 2013DENSITY 71 87 3 3rd Ave Union St Prospect Ave 63 Flatbush Ave Empire Blvd Parkside Ave 88 4 4th Ave Atlantic Ave Sackett St 64 Flatbush Ave Linden Blvd Cortelyou Rd

121 94 5 4th Ave Sackett St 6th St 65 Flatbush Ave - The Junction Foster Ave Avenue I 92 CROWN HEIGHTS 33 W E 6 4th Ave 6th St 18th St 66 Flatbush Ave Avenue L Avenue P WILLIAMSBURG 83 36 PARK SLOPE 57 7 5th Ave Flatbush Ave Bergen Street 67 Flatbush Ave Avenue R Avenue V 93 78 89 8 5th Ave Bergen Street Berkeley St/Sackett St 68 Flushing Avenue Wilson Ave Wyckoff Ave 35 110 CORRIDORS7 40 9 5th Ave Berkeley St/Sackett St 3rd St 69 Franklin Ave St. Marks Ave St. Johns Pl 38 81 80 CORRIDORS13 68 S 10 5th Ave 3rd St 12th St 70 Franklin Ave St. Johns Pl Eastern Pkwy 72 CORRIDORS15 79 120 11 5th Ave 12th St 16th St 71 Franklin St Eagle St Milton St 82 119 39 12 5th Ave 17th St 23rd St 72 Front/Water/Plymouth/Jay St - - 116 85 90 91 13 5th Ave 47th St 54th St 73 Fulton Street Mall Adams St Flatbush Avenue 118 49 55 14 5th Ave Senator St 97th Street 74 Fulton St Flatbush Ave Washington Ave 50 29 73 54 15 7th Ave Lincoln Pl 1st St 75 Fulton St Washington Ave Bedford Ave 51 30 60 103 46 61 74 34 108 2 16 7th Ave 1st St 9th St 76 Fulton St Bedford Ave Brooklyn Ave 52 56 4 7 75 86 76 17 7th Ave 9th St 16th St 77 Gateway Center - - 114 109 8 111 115 45 18 8th Ave 53rd St 61st St 78 Graham Ave Skillman Ave Grand St 5 9 62 69 3 117 19 9th St 4th Ave 6th Ave 79 Graham Ave Boerum St Flushing Ave 10 15 95 112 101 20 13th Ave 44th St 49th St 80 Grand St Union Ave Bushwick Ave 19 70 6 16 96 58 21 13th Ave 75th St 82nd St 81 Havemeyer St Grand St Broadway 11 17 22 18th Ave 61st St Bay Ridge Pkwy 82 Henry St Middagh St Clark Street 12 63 102 23 86th St 23rd Ave Stillwell Ave 83 Kent Ave North 7th St North 3rd St 113 100 24 86th St 4th Ave Fort Hamilton Pkwy 84 Kings Highway Coney Island Ave East 17th St 43 44 77 42 25 86th St 18th Ave 20th Ave 85 Knickerbocker Ave DeKalb Ave Menahan St 41 13 64 26 86th St Bay Pkwy 23rd Ave 86 Lewis Avenue Hancock St Fulton St 106 48 27 86th St (East Side) 20th Ave Bay Pkwy 87 Manhattan Ave Freeman St Greenpoint Ave 97 28 86th St (West Side) 20th Ave Bay Pkwy 88 Manhattan Ave Greenpoint Ave Nassau Ave 18 20 29 Atlantic Ave Clinton St Smith St 89 Metropolitan Ave Berry St Graham Ave 99 105 47 65 30 Atlantic Ave Smith St 4th Ave 90 Montague St Hicks St Court St 104 31 Avenue J Coney Island Ave East 15th St 91 Myrtle Ave Carlton Ave Steuben St 15 1 32 Avenue U Coney Island Ave Haring St 92 North 6th St Kent Ave Bedford Ave 31 66 21 33 Bedford Ave North 8th St North 3rd St 93 North 4th St Kent Ave Bedford Ave 24 22 34 Bedford Ave Metropolitan Ave South 5th St 94 Nassau Ave Dobbin St Russell St

67 35 Bedford Ave DeKalb Ave Fulton Street 95 Nostrand Ave St. Marks Ave Eastern Pkwy 84 36 Berry St North 8th St North 3rd St 96 Nostrand Ave Eastern Pkwy Empire Blvd 25 27 37 Brighton Beach Ave Brighton 4th St Coney Island Ave 97 Nostrand Ave Avenue D Foster Ave 26 28 38 Broadway Kent Ave Roebling St 98 Nostrand Ave Avenue T Belt Pkwy 23 32 39 Broadway Flushing Ave Park St 99 Nostrand Ave - The Junction Farragut Rd Avenue I

98 40 Bushwick Avenue Metropolitan Ave Johnson Ave 100 Pennsylvania Ave Linden Blvd Flatlands Ave 41 Church Ave East 7th St Argyle Rd 101 Pitkin Ave East New York Ave Mother Gaston Blvd 107 42 Church Ave Buckingham Rd Ocean Ave 102 Prospect Park West 15th St 17th St

59 43 Church Ave Ocean Ave Bedford Ave 103 Ralph Ave Broadway Decatur St 53

AY A B IC MA 37 JA 44 Church Ave East 49th St East 53rd St 104 Ralph Ave Flatlands Ave Avenue K

45 Classon Ave Atlantic Ave Eastern Pkwy 105 Rockaway Pkwy Farragut Rd Flatlands Ave

46 Columbia St DeGraw St President St 106 Rockaway Pkwy Seaview Ave Belt Pkwy

47 Coney Island Ave Avenue J Cortelyou Rd 107 Sheepshead Bay Rd Avenue Z Voorhies Ave

67 CORRIDORS 48 Cortelyou Rd Coney Island Ave East 16th St 108 Smith St Atlantic Ave Union St 2015 RETAIL 2013 FLASHBACK IN 2013 49 Court St Montague St Atlantic Ave 109 Smith St Union St 2nd Pl 50 Court St Atlantic Ave Bergen St 110 Union Ave Metropolitan Ave Grand St

PPSF Range Total Corridors Per Price Range Total Corridors Per Price Range 51 Court St Bergen St Baltic St 111 Union St Nevins St 4th Ave

52 Court St Blatic St 4th Pl 112 Utica Ave St. Johns Pl Union St $35 - $49 PSF 42 Corridors from $35 - $49 PSF 32 Corridors from $35 - $49 PSF 53 Cropsey Ave Belt Pkwy Neptune Ave 113 Utica Ave Linden Blvd Snyder Ave $50 - $64 PSF 37 Corridors from $50 - $64 PSF 54 Dekalb Ave Cumberland St Clinton Ave 114 Van Brunt St Commerce St Reed St INCREASE80% IN AMOUNT 15 Corridors from $50 - $64 PSF $65 - $79 PSF 17 Corridors from $65 - $79 PSF 55 Dekalb Ave Flatbush Ave Fort Greene Pl 115 Vanderbilt Ave Atlantic Ave Park Pl OF CORRIDORS 8 Corridors from $65 - $79 PSF $80 - $99 PSF 12 Corridors from $80 - $99 PSF 56 Douglass St Nevins St 4th Ave 116 Washington Ave Flushing Ave Park Ave 4 Corridors from $80 - $99 PSF $100 - $149 PSF 8 Corridors from $100 - $149 PSF 57 Driggs Avenue North 11th St Grand St 117 Washington Ave Pacific St Eastern Pkwy 5 Corridors from $100 - $124 PSF 121 CORRIDORS $150 - $199 PSF 3 Corridors from $150 - $199 PSF 58 Eastern Pkwy Schenectady Ave Utica Ave 118 Willoughby St Boerum Pl Flatbush Ave IN 2015 $200 - $250 PSF 1 Corridor from $200 - $250 PSF 3 Corridors from $150+ PSF 59 Emmons Ave Nostrand Ave Ocean Ave 119 Wilson Ave Flushing Ave Dekalb Ave $250+ PSF 1 Corridor from $250+ PSF 60 Flatbush Ave Willoughby St Livingston St 120 Wyckoff Ave Flushing Ave Myrtle Ave

121 Wythe Ave North 12th St North 3rd St NOTABLE RETAIL CORRIDORS

Union Street (NEVINS ST - 4TH AVE) – Located 86th Street (4TH AVE - FORT HAMILTON PKWY) – in the Gowanus, the section of Union Street that connects Historically, the stretch of 86th Street from 4th Avenue 2014 LEASES 4Carroll Gardens to Park Slope has several noteworthy retail- 1to Fort Hamilton Parkway has been one of the top retail ers, including Dinosaur BBQ, The Royal Palms Shuffleboard locales in Southern Brooklyn. That has drawn prominent Club, and Ample Hills Creamery, voted one of the top ten ice ANNUAL RIDERSHIP retailers to the area, including recent lease signings by cream parlors in the country. Union Street’s popularity is due Chipotle, Victoria’s Secret, and Panera Bread. In addi- in large part to its proximity to the R train at Union Street and tion, Century 21’s expansion to 87th Street has brought 4th Avenue and, similar to North 4th Street in Williamsburg, UNION STREET shoppers from outside the neighborhood, broadening the its large floor plates. It also benefits from having the Holiday customer base for all retailers in the area. An extra 40,000 Inn Express (115 rooms) and will soon add the Gowanus Inn SUBWAY STATION square feet and a 280-car parking garage will do that! & Yard, an 82-room boutique hotel. The Proteus Gowanus, an interdisciplinary gallery and reading room along the canal, Gateway Center (EAST NEW YORK) – The Gate- also serves as a cultural destination that boosts the number 2,058,555 way Center has super-sized into a one-stop shopping of visitors to the Union Street retail scene. 2experience in East New York. Indeed, with over 1.19 million square feet, the Gateway Center is one of N. 4th Street (KENT AVE - BEDFORD AVE) – As Bed- Brooklyn’s largest suburban-style retail developments ADDED ford Avenue in Williamsburg has become arguably one of accessible at shoppers’ urban convenience. Phase 1 5the best retail corridors in Brooklyn, its magnetism has led RAPID TRANSFORMATION of the project brought in BJ’s Wholesale, Home De- retailers to the surrounding side streets just to be in prox- NORTH 4TH STREET pot, Bed Bath & Beyond, Target, Best Buy, Staples, 605,000 imity to this rapidly ascending retail destination. North 4th 2013 Olive Garden, Boulder Creek Steakhouse, and others. SQUARE FEET OF Street was particularly poised to capitalize on Bedford Av- That success helped pave the way for Phase 2 ten- enue’s success with its uniquely large floor plate, attract- NOT ON MAP ants such as Bank of America, Nordstrom Rack, Buf- ing recent tenants such as Whole Foods, Joe Fresh, New 2015 falo Wild Wings, Sports Authority, TJ Maxx, Burlington York Sports Club, Blue Bottle, and Steven Alan Home. Coat Factory, Applebee’s, and JCPenney’s first ever PHASE II etail This is the prime example of a side street that not so long $100-$149 PSF Brooklyn location. R ago had zero retail traction, but is now incredibly one of the more expensive blocks in the borough. Smith Street (ATLANTIC AVE - 2ND PL) – It wasn’t too long ago that Smith Street was known almost ex- RECENT DIVERSIFICATION 5th Avenue (SACKETT ST/BERKELEY ST - 3RD ST) – 3clusively as “Restaurant Row.” Now, however, the Smith 5th Avenue in Park Slope, running from Sackett Street/ Street landscape is changing. The mix of retailers is 6Berkeley Place to 3rd Street, has become a “Restau- quickly diversifying as national apparel and wearable rant Row” in its own right. Grand Central Oyster Bar, brands such as Lululemon Athletica, Intermix, SEE, Free offshoot of the iconic seafood eatery at, you guessed AVERAGE People, and Lucky Jeans join Smith Street’s signature it, Grand Central, opened here last year, along with Two series of culinary delights. Boots pizza, which also relocated from the same loca- tion. It’s also home to popular dining and drinking des- HOUSEHOLD tinations such as al di la Trattoria (Brooklyn-born Italian BROOKLYN WELCOMED THESE TENANTS IN 2014 restaurant perennially recommended by the Michelin INCOME$150K guide), Calexico, Blue Ribbon Brooklyn, Naturo Ramen, the punny Pork Slope, and many more.

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CPEX NEW YORK RETAIL LEASING TEAM Timothy D. King Managing Partner Timothy D. King aligned with partner Brian Leary to found CPEX in 2008. In his role as Managing Partner, Mr. King co-heads the firm’s business line divisions and business de- velopment. During his forty-plus years in real estate operations, he has been instrumen- tal in attracting numerous national retailers to the outer boroughs. Under his direction, the New York Retail Leasing Team has become a powerhouse of performance and the firm of choice for landlords, tenants, and tenant representation brokers.

Ryan Condren Managing Director Ryan Condren was promoted to Managing Director of the New York Retail Leasing Team in 2011 after joining CPEX as an Associate Director in 2008. His achievements in retail leasing have gained him recognition as a two-time CoStar Power Broker (2011, 2012), and he was also honored in the Home Reporter and the Brooklyn Spectator for earning the 2012 Brooklyn Rising Stars Award. With Mr. Condren as one of its leaders, the New York Retail Leasing Team has been responsible for the completion of over 100 lease transactions totaling more than 450,000 square feet of retail space with an aggregate lease value of over $425 million.

George Danut Associate Director George Danut has been a part of the CPEX New York Retail Leasing Team since Sep- tember 2012. As an Associate Director, he supports the New York Retail Leasing Team by providing market research, valuating leases, preparing marketing packages, and executing the lease of properties. Since the beginning of 2013, Mr. Danut has assisted in the lease of over 48 retail spaces with such notable tenants as Harbor Freight, LePort Schools, Duane Reade, Gymboree Play & Music, Bar Method, and Benefit Cosmetics. Keat Chew Associate Keat Chew joined the Retail Leasing Team in May 2015. Raised in a Malaysian house- hold, he speaks Mandarin, Cantonese, and Hakka to bring Chinese fluency to the company. Prior to joining the team, Mr. Chew was an Associate on the Mixed-Use Investment Sales Team, following his completion of the Sales Training Program in 2014. During his time with the Mixed-Use Team, he completed nine transactions totaling more than 60,000 square feet, with an aggregate sales value of over $24 million.

WWW.CPEXRE.COM PREPARED BY THE CPEX RETAIL LEASING TEAM 81 WILLOUGHBY STREET, 8TH FLOOR | BROOKLYN, NY | 11201 | 718.935.1800 WWW.CPEXRE.COM