Brooklyn Panelists Question Rent Freeze, Eye Fulton Street Retail Revival

What happened

Brooklyn real estate was the only topic at a Thursday conference sponsored by the investment sales brokerage TerraCRG, Commercial Observer reported. The event, called The Only Brooklyn Real Estate Conference, was held at BRIC, 647 Fulton Street in Downtown Brooklyn. Mayor Zohran Mamdani's rent freeze and a retail revival on Fulton Street were the main subjects.

Brooklyn Borough President Antonio Reynoso and Deputy Mayor for Housing and Planning Leila Bozorg opened the event. In her keynote, Bozorg said over half of the city's renters are rent-burdened, meaning they pay more than 30 percent of their income toward rent. She said a large share pay 50 percent. She described a new era of housing development as the expedited land use review procedure (ELURP) takes hold in 12 City Council districts. She pointed to the administration's plan, "Block-by-Block: The Housing Plan for New Era," a $5.6 billion plan to create 200,000 new affordable homes and preserve another 200,000.

On the multifamily panel, speakers doubted the legality of the Rent Guidelines Board's rent freeze, which took effect Oct. 1 and faces a lawsuit. They expected major downsides for the affordable housing market. TerraCRG's Matthew Cosentino said he thinks the freeze will be found unlawful but that it will not make a big difference, because a small increase would not be substantial for most owners.

On the Downtown Brooklyn panel, Albert Laboz of United American Land discussed the former Macy's building at 422 Fulton Street. It is becoming a four-story retail atrium and 440,000-square-foot entertainment complex called BKX. Laboz said he expects it to be a catalyst for change on Fulton Street.