Brooklyn, NY More than 250 companies have signed leases totaling 2 million s/f at the Industry City complex since the transformation of the site into an economy hub was launched two years ago. The 250 companies include new leases, renewals and expansions.
70 long-time occupants, including flavor and extract company Virginia Dare, which originally leased space at Industry City nearly a century ago and is the property’s oldest tenant, were joined by newcomers such as Time Inc., BaubleBar and the Brooklyn Nets. New leases have amounted to 1.3 million s/f and renewals and expansions have accounted for an additional 700,000 s/f.
In all, 2,000 jobs have been created in the last two years, with a growing number going to area residents as a result of the property’s local hiring initiatives. A recent survey of tenants found that nearly half of the people working at Industry City live in the communities neighboring the massive industrial complex.
Most recently, Raison Pure, a full-service international design agency with 24 years of experience in design strategy, branding, packaging and merchandising, leased 14,000 s/f for their new company headquarters in May. The 50-employee creative firm will relocate to Industry City from their current space in Manhattan later this year. Kathe Chase and Jeff Fein of Industry City’s internal leasing team represented Industry City in the 10-year deal. Raison Pure did not have a broker.
“With the unique tenant mix we’ve cultivated over the last two years, Industry City offers today’s innovation economy much more than a physical space to set up shop,” said Andrew Kimball, CEO of Industry City. “There is truly a community here – unlike anywhere else in the country – where artists and manufacturers and makers and innovators of all kinds come together and collaborate in new and exciting ways. Together, they have created a vibrant culture here that, true to the Brooklyn brand, fosters B2B growth and ingenuity.”
“Brooklyn is the first-choice destination for today’s most innovative brands,” said Kathe Chase, director of leasing at Industry City. “Over the last two years, we’ve built a creative business hub at Industry City that offers these companies the kind of collaborative working environment they’re looking for in an aesthetic that celebrates Brooklyn’s storied history of making.”
Major new leases signed include:
• NYU Lutheran – The premier medical and social support system leased 29,000 s/f for administrative offices and a training facility that will house 140 employees when fully activated. The 15-year lease, which was signed in August 2015, was negotiated by Josef Yadgarov of Corcoran, on behalf of NYU Lutheran, and Kathe Chase and Jeff Fein, both of Industry City’s internal leasing team, on behalf of Industry City.
• Time Inc. – The media giant leased 55,000 s/f for a space to house the company’s Technology, Content Solutions and Editorial Innovation departments in a 15-year deal, signed in July 2015. More than 300 employees will move into the complex by year’s end. Zev Holzman, Howard Nottingham and Matthew Barlow of Savills Studley represented Time Inc. in lease negotiations. Bruce Mosler, Mitchell Arkin, Kelli Berke, Joseph Cirone, Haley Fisher and Mikael Nahmias of Cushman & Wakefield represented Industry City.
• Park Irmat Drug Corp. – The premium dermatology pharmacy leased 26,000 s/f for the company’s headquarters and operations. In total, 150 employees will be housed in the space. The 10-year lease, which was signed in May 2015, was negotiated by Ross Perlman and Ryan Gessin of Newmark Grubb Knight Frank, who represented Irmat, and Bruce Mosler, Mitchell Arkin, and Joseph Cirone of Cushman & Wakefield, who represented Industry City.
• Design Within Reach – The modern furniture and home décor leader leased 39,000 s/f for an interactive outlet store and repair facility, which opened in May 2015. The five-year lease, which was signed in July 2014, was negotiated by Industry City’s internal leasing team on behalf of Industry City. Design Within Reach represented itself in the deal.
• BaubleBar – The fast-growing jewelry e-commerce startup leased 53,000 s/f for a production and distribution space that houses 150 employees. The 10-year lease, which was signed in September 2014, was negotiated by Mitchell Arkin and Owen Hane of Cushman & Wakefield on behalf of BaubleBar and by Industry City’s internal leasing team on behalf of Industry City.
• Brooklyn Nets – The NBA team leased 75,000 s/f for a new state-of-the-art training center, known as the Hospital for Special Surgery (HSS) Training Center. The $35 million HSS Training Center is set to open in February 2016. The 25-year lease, which was signed in June 2014, was negotiated by Glen Markman, Bruce Mosler, and Joseph Cirone of Cushman & Wakefield on behalf of the Nets and by Industry City’s internal leasing team on behalf of Industry City.
Major renewals and expansion include:
• MakerBot – The consumer market leader in 3D printing expanded from 45,000 s/f in February 2013 to 250,000 square feet by October 2014. The company now houses more than 200 employees and their entire manufacturing, engineering and design operation at the complex. The 10-year lease was negotiated by Glen Markman and Joseph Cirone of Cushman & Wakefield on behalf of MakerBot and by Industry City’s internal leasing team on behalf of Industry City.
• Virginia Dare – The flavor and extract company that signed its first lease at Industry City in the 1920’s renewed and expanded its manufacturing complex to 150,000 s/f in October 2013. The 10-year lease was negotiated by Industry City partner Bruce Federman for Industry City. The tenant did not have a broker.
• BMGM – The fashion company which signed their initial lease with Industry City in 2000 for 5,500 s/f has expanded several times and currently utilizes their 37,000 s/f space for manufacturing, warehousing, and distribution of garments. The company recently renewed their lease for an additional five-year term. The tenant did not have a broker.
• West Elm – The subsidiary of Williams-Sonoma Direct, Inc. has been a tenant at Industry City since April 2012, expanding the original 11,600 s/f premises to a 52,000 s/f facility housing a maker’s studio for prototyping, photo studio and distribution center. The recent expansion also extended the term for an additional 10 years through August of 2028. The combined expansion and renewal was negotiated by Retail Strategies on behalf of West Elm.
Since September 2013, the property’s ownership – led by Belvedere Capital, Jamestown and Angelo Gordon – have infused $100 million to redevelop the long-vacant and underutilized property into a vibrant hub for today’s innovation economy. That initial investment is expected to top $1 billion, when combined with tenant investment, over the next ten years, and generate a total of 20,000 jobs. Implementation of the long-term investment plan requires a rezoning to be considered through a public review process.