Commercial Rents Spike for Businesses Surrounding Atlantic Yards

Months before the official opening of the Barclays Center, local real estate agents say they have seen a doubling in rents for retail space, and no shortage of businesses who want to move to the neighborhoods surrounding the arena, according to the Wall Street Journal.

Sharon Davidson, executive director of the North Flatbush Business Improvement District told the paper that the change in the neighborhood from five years ago is drastic, and now with the opening of the arena “the rents have doubled and I get calls from people who want to move to this area.”

"This is my most expensive lease in Brooklyn, but it has the most visibility," Five Guys franchise owner Craig Cohen told the Journal of his Flatbush Avenue restaurant. "I expect a 20% jump in sales once the arena is open but even with the way the neighborhood is now, we are way ahead of our projections.” 

For longtime business owners, though, this has spelled trouble, as landlords are now looking to cash in by refusing to renew leases, or inflating rents.

Earlier this month, after 96 years in business, its doors, and the owners are now looking to sell the building.

“Because of the arena across the street, it’s made this building extremely attractive. … It’s just a good time to do it,” co-owner Henry Rosa had told Patch.

Davidson had told Patch that since the Barclays Arena was announced several years, ago rents for nearby commercial space has spiked, rising from $30 to $50 a square foot to $65-$100 (or $50 if a gut renovation is in order).