Brooklyn's Williamsburg neighborhood: No longer a community of starving artists

It is no secret that the Williamsburg retail market has been undergoing a dynamic overhaul for the past 10-15 years. For most of that time, Williamsburg has been known as a retail community made up of hip bar and restaurant operators, pioneering local entrepreneurs, and eclectic boutique owners. Times have changed. Williamsburg is on the verge of the next big phase in its retail evolution. After 15 years of explosive growth, the Northside is finally gaining the attention of many large, national retail chains. Why now? What has changed that has put this area of Williamsburg on the map for these large, corporate chains? For starters, the Northside is no longer a community of starving artists. Residential brokerage firm MNS reports in their Brooklyn Market Report, that for the 13 months ending September 2012, the average price of a studio apartment in Williamsburg increased from $2,375 per month to $2,968 per month. Similar gains are seen in both one and two bedroom apartments. It is taking more and more discretionary income to live in this neighborhood, and retailers are hungry to tap into it. This is why places like the Wythe Hotel are doing so well. There are actually residents in the neighborhood that will spend $15-$18 on a martini instead of ordering a draft beer. There are customers living in the neighborhood that will pay a premium for organic groceries, and spend $100 per month on a gym membership. The Northside, in particular, is the epicenter of what started 15 years ago in Williamsburg. This is the area bound by N 1st St. to the south, McCarren Park to the north, the BQE to the east and the East river to the west. The community is conveniently serviced by the Bedford Ave. (L) subway and is of particular interest to these larger, corporate, national, and even international companies. Evidence of this interest can be seen through recent transactions with large national chains claiming a stake in the market. For example, Whole Foods and NYSC took space on North 3rd St. between Bedford and Berry Aves. Several of New York City's top food personalities are scouting spaces to open their next restaurant in the neighborhood. It has been rumored that national clothing retailers are considering stores on the Northside. Several of the highest grossing night club operators from around the country also want in on the action. Another reason national tenants are giving the area a hard look is that there is actually product on the market now suitable for their needs. The product is coming in the form of new mixed-use developments such as 184 Kent and The Edge located on North 7th St. Both properties feature restaurants, entertainment, and a tremendous amount of retail. These new construction spaces are delivered as a white box, equipped with central HVAC, and are larger, more modern, and very suitable to what these larger retailers need. Other conversion properties such as 247 Bedford Ave. and the soon to be Cineplex located at the corner of Grand St. and Driggs Ave. offer many of the same amenities that the new construction offers. Traditionally, this type of retail space was not available in Williamsburg. Previously, most of the established businesses were primarily operating out of 25 footers located along the Bedford Ave. corridor. These small properties really limited the types of businesses that could operate in the neighborhood. Despite all of the growth, change and attention that Williamsburg is accustomed to receiving, it is about to receive even more. Over the next 18-24 months there will be substantial interest from more national and even international tenants looking to set up shop in the neighborhood. Williamsburg has grown to be one of the most popular areas of Brooklyn. Thanks to public transportation there is easy access from Manhattan via the L train and from Brooklyn and Queens on the G train. A beautiful day has visitors coming in from the East River Ferry or Williamsburg Bridge as well. Boasting the best in trendy bars and restaurants along with unique shopping options, Williamsburg is becoming just as chic and desirable, albeit a more affordable option for retailers than Lower Manhattan. Andrew Clemens is a director of Retail Leasing at Massey Knakal Retail Leasing Services, New York, N.Y.