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August 22, 2012
The arena effect or the "Brooklyn" effect? Top broker suggests the latter is more important
Atlantic Yards Report
From the Commercial Observer: The Eight Percenter: In 2012, Massey Knakal’s Stephen Palmese Closed 8% Of All Brooklyn Sales Deals. How?:
The draw for Brooklyn is the borough itself, he says, and not the so-called residual value that will be created by the impending debut of Ohio-based developer Forest City Ratner’s Atlantic Yards Development, which other brokers and developers have been boasting about ever since the Barclays Center broke ground in 2010.
“I think that’s hogwash,” he said of the shared benefits of the Atlantic Yards development on residential real estate. “I don’t think it’s going to affect residential rates at all. You can argue that it could decrease rents.”
“It has sort of insulated and propped up the retail in the surrounding corridors that were trying to find their identity,” Mr. Palmese said. “So yes, it has had a positive effect for retail, but I think it has a negative effect on residential.”
I agree that "Brooklyn" itself is the draw; after all, that's why the arena's here.
The arena impact: mixed
But I suspect that the arena's impact in both categories is a bit more mixed. "Positive effect" means increasing retail rents in the orbit of the arena, though that likely means that the retail mix will become skewed toward bars and restaurants and stores that can cater somewhat, if not mostly, to an arena crowd.
Already there's a plethora of bars and restaurants likely aiming for cross-over success. That already means that more workaday businesses, like laundromats and stationary stores, get nudged out, and local residents who depended on them feel a loss.
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The Commercial Observer, The Eight Percenter: In 2012, Massey Knakal’s Stephen Palmese Closed 8% Of All Brooklyn Sales Deals. How?
Posted by eric at August 22, 2012 10:52 AM