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March 7, 2007

Office market (and tax revenues) tanking for Atlantic Yards?

Atlantic Yards Report

An article in the March issue of The Real Deal, headlined Downtown Brooklyn office vacancy rises, details the opportunity provided to companies by "the relatively new availability of large blocks of Class A office space in Downtown Brooklyn -- as well as low rents compared to Manhattan."

While we await the results of that positive spin, that certainly suggests that there may be even less demand for office space in the Atlantic Yards project than currently envisioned. That would mean even less tax revenue, which was already lowered significantly by a cut in office space.

Remember, the original promise was space for 10,000 office jobs. At last count, there'd be space for 1340 office jobs, though the number of new jobs might be 375. Now even that's jeopardized.

The reason for the current downturn: Forest City Ratner's MetroTech Center has been losing tenants, as investment banks, insurance companies and other financial institutions have relocated or shrunk their back office space.

Norman Oder cleans up the article's Atlantic Yards facts (why magazines don't run their facts by the Mad O, we don't know), ponders some of Forest City Ratner Atlantic Yards Group President Jim Stuckey's assertions about the market for Class A office space in Brooklyn and then does a takedown of NY Post columnist Andrea Peyser.

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Posted by lumi at March 7, 2007 7:44 AM