Almost everyone considers Manhattan one of the prime areas of office recovery since the pandemic, but one Brooklyn submarket might not be getting enough love. That's Industry City, a six-million-square-foot business park in Sunset Park.
A report from CoStar highlights that the area struck 70,000 square feet worth of lease deals in the first quarter. Now, more than 650 companies operate in Industry City.
So what stands out about the area that would attract tenants compared with prime Manhattan? A few things, according to Jeff Fein, senior vice president of leasing at Industry City, who is focused on 16 buildings in the area.
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COMMUNITY AND SCALABILITY ATTRACTING TENANTS TO INDUSTRY CITY
First is the featured community and environment, which is especially important today to lure workers back to offices.
"What we've built here has been nothing short of amazing, in terms of the amenities that are here at the breath and the scope of the campus, the outdoor space, the indoor space, and the retail connected," he told GlobeSt. Industry City fancies itself as one of the "each, drink and shop" districts in the country. Some of the amenities that can be found in the area include workshops, classes, tastings, galleries and other activities, aside from the office spaces.
The other aspect is what Fein calls scalability, which offers tenants more leasing options, whether they want to stay at the buisness park long or short-term.
"We've had many companies that have been with us for many years, and companies that have just been with us for a short time," he said.
"When they need more space because of the size and the magnitude of the property, they can grow here. And I think coming here, knowing that they're not going to get squeezed out of their space because they want to hire 10 or 15 more employees, is not just in the back of their mind. Growing companies think about that one day when they make their leases."
TYPES OF INDUSTRY TENANT ATTRACTED
According to some recent deals that Fein has been a part of, a range of tenants across various industries have signed leases at Industry City. This includes warehousing, architecture, woodwork, craftsmanship, and art tenants.
Additionally, Fein said he's seen a "fair amount" of biotech deals in the area within the past six months. "That seems to be growing too," he added.
But overall, these spaces are suited for just about any industry looking for office space.
MORE DEALS TO COME
As things stand, Fein is optimistic, even though it will be tough to predict what happens with the economy over trade policy from the Trump Administration in the coming months.
In fact, Fein noted that there are currently more than 100,000 square feet of deals in the works.
"You'll hear a lot about new deals coming out soon," he noted.
"I don't see where things are falling down for us. That's because of our product variety, our pre-built and our size options. The short-term outlook is "looking very good," he added.
But he did note that volatility does happen over his 15-year stint with Industry City. "It seems to be momentum that disappears and then picks up again," he explained.
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