Office space demand building up in Sheepshead Bay

the outer boroughs of N.Y.C. there is a large increase in demand for quality office space. The days of renting a basement office or a converted, albeit nicely renovated, apartment or office above a store are long gone. As a result, boutique office buildings are thriving in neighborhoods such as Sheepshead Bay, Brooklyn and investors have taken notice. Boutique office buildings are presenting a desirable and safe place to invest in as commercial tenants are responsible for their own repair; they pick up the real estate taxes and a big part of other expenses. Furthermore, this asset group requires very little management. As a result, many of our clients are selling their residential buildings, in exchange for these types of commercial assets in established areas like Sheepshead Bay. Sheepshead Bay is seeing growth as people are attracted to the more affluent neighboring communities such as Manhattan Beach and the luxury developments like 1125 Banner Ave., La Mer Villas and the Oceana Condo & Club. The area has seen a growing demand for various businesses that can provide services to this growing population. Sheepshead Bay is accessible by major means of transportation, it is right off the Belt Pwy. and is 30 minutes from Manhattan. A client recently had two office spaces come to market, one 1,280 s/f and the other 1,800 s/f, both of which were in a building constructed in 2001 on Voorhies Ave., steps off of Sheepshead Bay Rd. - a major retail thoroughfare. Both spaces were leased within a week of being placed on the market with ten year leases signed. The spaces rented for $30 per s/f. New construction in the area has even fetched close to $40 per s/f. Sheepshead Bay and areas like it in the outer boroughs have proven to be a credible alternative to the Manhattan office space marketplace. Erik Yankelovich is a director at GFI Realty Services, Inc., New York, N.Y.