MNS Sees Positives in Brooklyn Rental Report
- Mar 01, 2012
New York—Residential brokerage, sales and marketing firm MNS released its January 2012 Brooklyn Rental Report, and although there was a slight decrease in rental rates for the beginning of the year, all signs point to a positive year ahead.
“Our findings show that the Brooklyn market remains very strong. Pricing has increased significantly and we foresee a tremendous amount of growth in the future,” MNS CEO Andrew Barrocas tells MHN. “This isn’t a surprise to us. We see the demand out there with the numbers they are achieving, and there’s a lot of positive signs of growth in the area.”
One of those expected growth areas is due to the upcoming Barclays Center Arena that will house the NBA’s Brooklyn Nets beginning next year. Barrocas expects the building to bring a slew of new retailers and developers to Brooklyn in the next few years.
MNS based its report on a cross-section of data from available listings priced under $10,000, with ultra-luxury property omitted to obtain a true monthly rental average.
“Brooklyn’s rental market remains hot, as outer areas in the borough start to pick up strength,” Barrocas says. “We are very optimistic about what we are seeing in the area.”
The greatest positive change occurred in the neighborhood of Cobble Hill where year over year rental rates for one- and two-bedroom units were up 7 percent on average.
Williamsburg was also hot, with a $26 price increase, as compared to Fort Greene which had a $26 decrease.
“There are a lot of positives to Williamsburg. It has a lot of character and its proximity to Manhattan makes it very inviting and an area that’s certainly in demand,” Barrocas says. “There’s a tremendous amount of hype because of the product that’s come into the area. There’s been a lot of development on the waterfront and you have retailers coming in.”
Plus, with the L subway line just one stop from Manhattan and the water taxi making it convenient to get to 34th St., Barrocas believes that the growth will only continue.
Other notable figures from the report show the largest decrease on a month-by-month comparison in studios was seen in Bushwich, where rental rates fell by 7.1 percent (nearly $100 per month). Crown Heights decreased 5.9 percent (approximately $95) for one-bedrooms, while Bedford-Stuyvesant decreased 7.6 percent (about $172 per month) for two-bedrooms.
“Although we saw a slight decline in rental rates in certain areas, this is normal due to seasonality,” Barrocas says. “In my opinion, that $10 decrease in apartment pricing in a winter slow month can still be seen as a positive sign. We expect rental rates to continue to gain strength as Brooklyn continues to grow.”
MNS used data aggregated from its proprietary database and sampled from a specific mid-month point to record current rental rates offered by landlords during that particular month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), OnLine Residential (OLR.com) and R.O.L.E.X. (Real Plus).
“I am optimistic because there is a tremendous amount of development happening in the area,” Barrocas says. “Banks wouldn’t be lending if the demand wasn’t there. I think we will see a high level of demand in the next 12-24 months with another wave of development in Williamsburg, with a lot of rental inventory coming into the market.”