November 5, 2006
Major tenants steer clear of Downtown Brooklyn office space; what of AY?
Atlantic Yards Report responds to last week's piece in The Real Estate:
There may indeed be a market for smaller parcels for "creative industries." But that raises questions about the Atlantic Yards plan. Remember, developer Forest City Ratner initially promised office space for 10,000 jobs. Last year, the amount of space was cut by two-thirds, and the number of jobs projected to about 2500. The explanation from FCR's Jim Stuckey: "Projects change, markets change."
So what kind of jobs and tenants does the developer expect? Phase 1 wouldn't be completed for four years, under the optimum conditions. Can anyone predict? And if the market for office space changes, so might the market for residential space, which means that Phase 2--which would contain most of the affordable housing--can't be guaranteed.
And would "creative industries" prefer to be in a couple of giant office towers or less standardized spaces either adapted from existing buildings or in smaller buildings than those planned for Atlantic Yards?
Posted by amy at November 5, 2006 3:20 PM