A brand new commercial development will bring 400,000 square feet of new office and retail space to 420 Albee Square in Brooklyn’s Tech Triangle. The high-rise project will be the first ground-up construction of commercial space since the re-zoning of the area in 2004. It’s also the latest part of the Downtown Brooklyn Redevelopment Plan, a City strategy to revitalize this area, under which the City has made $300 million in public investments in open space and infrastructure commitments.420 Albee Square will provide space for innovative and technology focused businesses in rapidly expanding sectors of the economy while helping to further advance the growth of Brooklyn’s Tech Triangle. The project is expected to create approximately 722 permanent jobs and 566 new construction jobs, and by adding at least 400,000 square feet of space, this development will help address the need for additional office space in New York City. NYCEDC projects that 60 million square feet of new commercial office space will be needed across the city by 2025, much of it in outer borough commercial hubs like Downtown Brooklyn.
Initial plans for 420 Albee Square, filed more than a year ago, called for a 65-story tower with 650 apartments and over 270,000 square feet of commercial space. In March, new plans emerged showing just 248 apartments and 36,500 square feet of commercial space.
As of today, JEMB has switched the development to primarily office space. To facilitate the project, the City sold JEMB 120,000 square feet of air rights and a 3,000 square-foot adjacent parcel of land for a total of $15.5 million.
In a statement about the project, Downtown Brooklyn Partnership President Tucker Reed, said: “In 2004, Downtown Brooklyn was rezoned with a primary aim of creating new office space, but since then we’ve experienced a residential boom instead. It’s time for our commercial inventory to catch up, and today we can see how leveraging government owned assets to help the marketplace achieve public goals helps get us there. That’s smart economic development policy.”
With commercial vacancy rates well below the national average (Downtown Brooklyn’s vacancy is at 3.5%), demand for flexible and modern commercial and office space in New York City is extraordinarily strong and is expected to continue to grow.