We know, a subway apocalypse is under way: the dread L train shutdown. But, could it be good? At least there’s some sort of silver lining on the horizon and it involves your wallet. Two words: rent decrease. It sounds delicious, doesn’t it?
Many business owners and landlords went aflutter at the whispers of an L train shutdown. After all, who is going to take advantage of those over priced luxury tower amenities? Who will do a drunken brunch crawl and buy an artisanal crafted but vintage looking $1k leather jackets? The horror.
Will rent prices crumble? What’s the real story here? The Real Deal interviewed a few brokers and the results are illuminating. Rent price decrease are definitely anticipated. Either way, you might want to renegotiate those rent prices on your North Brooklyn apartment before you resign that lease.
Check out some quick facts:
- 78% of apartments in North BK are occupied by renters
- Renters are most likely to be affected by train shut downs (duh)
- Small business rents go for approximately $350 per square foot (yikes)
What does this mean?
- Realtors predict a 15% rent price drop
- Rent drops will happen quickly
- Small businesses that largely serve their community members might not be deeply impacted
- Small businesses that expect a bigger client base from traffic from the Manhattan and Brooklyn L lines will take bigger hits
- Most realtors feel long-term affects won’t last – “It’s way too established of a neighborhood to long term be affected by this,” said Warner Lewis, Halstead Proper Broker
So, the L train shutdown might not stop huge developers from building, but residents and business owners can anticipate rent changes in the near future. However, the MTA hasn’t released maybe details or alternative plans for its 2019 closure. Stay tuned, folks.
[H/t The Real Deal]
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