March–April, 2008: Vol. 1, No. 1

The epicenter of the Brooklyn boom is Downtown Brooklyn. In the three square-miles from the Manhattan Bridge to the proposed Atlantic Yards project just beyond Downtown’s southern border, more than 57 developments are already going up or on the drawing board — a total of $9 billion in private investment.

The massive building boom is a result of two main factors: a 2004 upzoning that allowed taller (and more profitable) buildings, and a greater commitment by city officials to realize Downtown Brooklyn’s potential as a true, 24/7 center for a city of 2.5 million people.

For the last two years, one man has been the neighborhood’s main cheerleader and button-pusher. This month, we checked in with the ultimate insider: Joe Chan, president of the Downtown Brooklyn Partnership.

Brooklyn Boom: Why is Downtown booming — and why now?

Joe Chan: One factor is the astronomical success of the residential neighborhoods surrounding Downtown. Over the last 10 years, they have become some of the most desired places to live in the entire city, yet each has limited housing stock. But Downtown is one place within the area where you can develop housing with great access to mass transit and do so in a denser way.

Another factor has been the talent base that lives in and around Downtown Brooklyn, from the 38,000 students who come in every day to the residents themselves — 56 percent have college degrees or higher. Having so many talented people living in Brooklyn means that the residential barriers that once existed have been broken down. And that leads to a change in how non-Brooklynites see Brooklyn, which leads to a change in the retail and office base.

BB: Retail? You mean like the new Morton’s steakhouse going in on Adams Street?

JC: Yes, and the Amy Ruth’s restaurant in the old Gage & Tollner space on the Fulton Mall. But it’s more than that. We still don’t have a place where you can get a quart of milk at 11 pm, but we will. And you’ll see a resurgence in department stores, which is a big trend nationally right now.

BB: I know. We’re hearing that Target will open a second location in the City Pointe building [which will replace the old Albee Square Mall].

JC: The reason you’re hearing that is because national retailers are realizing that Brooklyn is a big opportunity. It may sound like a risk for Target to open a second store within a mile of its Atlantic Terminal store, but when you look at the success of the existing Target, it makes you realize how big a market we have here.

BB: And to think it all happened because of that 2004 upzoning.

JC: I think the city was smart to recognize that the lack of a 24/7 community was Downtown Brooklyn’s weakness. But it was a weakness that could become a strength. A real downtown needs people here all hours of the day. All of this private investment is happening with just $400 million in public investment, for infrastructure and open space.

BB: Any storm clouds on the horizon?

JC: Brooklyn does need to further diversify its economy. Financial services and the insurance industry have made up a significant portion of Downtown Brooklyn office tenancy, but moving forward you’ll see creative industries: design, software, architecture. Brooklyn represents something a bit more innovative. Downtown now has the avant-garde cachet that the Brooklyn Academy of Music has had all these years.

©2008 The Brooklyn Paper