Taking a community to the next level: Retail dev.

Vacant retail and lackluster stores can put a damper on any N.Y.C neighborhood and negatively impact surrounding asset value and residential tenancy. Retail development and re-development can be a stimulant for neighborhood revitalization. We saw it happen to Harlem's 125th St. corridor in the early 2000s. National retailers, such as H&M, and gourmet markets such as Citarella now make up the landscape. Aided by the Upper Manhattan Empowerment Zone and the promising 125th St. re-zoning, we will continue to witness a roar in Harlem. Across the East River, Brooklyn's new $150 million retail center, Triangle Junction, with 460,000 s/f, is expected to rejuvenate the Flatbush area. The site is located at the intersection of Flatbush Ave. and Nostrand Ave., with Target as the anchor tenant. Despite the foot traffic and central location of the Flatbush Ave. retail strip, it was frowned upon by most retailers until Target secured its spot on the block. Now, several others including Circuit City & Payless have followed in their footsteps. Local storefront owners were able to achieve substantial rent increases compared to just a few years ago, and now vacancies are sparse. Landlords of surrounding residential buildings believe the recent development will attract a new wave of tenants seeking a full-service community. We are presently marketing a nine-building multifamily portfolio right in proximity of this new development. Watching N.Y.C. neighborhoods emerge and evolve from substandard to stable is always exciting to witness. Retail development is a key factor in taking communities to the next level, let's see which neighborhood is next. Christen Portelli is an associate broker at Besen & Associates, Inc., New York, N.Y.