Last week, Downtown Brooklyn Partnership (DBP) hosted its annual Real Estate Breakfast at the Ace Hotel Brooklyn. This year’s focus was on the state of the retail market in Downtown Brooklyn, featuring two dynamic panel discussions that brought together business leaders, policy experts, and other community stakeholders to discuss the opportunities and challenges shaping the neighborhood’s retail landscape.
Setting the Stage: Growth and Challenges
Regina Myer, President of DBP, opened the event with a overview of the district’s impressive growth since its 2004 rezoning. Notable mixed-use developments, such as City Point, the transformation of the Offerman Building, and the reopening of Gage & Tollner, illustrate Downtown Brooklyn’s evolution into a thriving urban center. Myer also acknowledged that the district faces significant hurdles, including a high storefront vacancy rate along Fulton Mall, driven by the shift to e-commerce and the lingering effects of the pandemic. Jared Della Valle, CEO and Founder of Alloy Development and Chair of DBP, emphasized the need for collaboration among stakeholders to reimagine the neighborhood’s retail landscape and steer it toward long-term success.
Reimagining Brooklyn’s Retail Market
The first panel explored strategies to define and strengthen Downtown Brooklyn’s retail identity and address obstacles deterring national and local retailers. Chris DeCrosta of GoodSpace emphasized the untapped potential of the neighborhood as “an everyman market,” that has elements of Broadway, Soho, and lower Fifth Avenue. Despite its prime location, residential demographics, and unmatched transit connectivity, convincing brands to establish flagship stores on Fulton Street or Flatbush Avenue is challenging. “We know these brands would thrive here, but they often hesitate due to outdated perceptions of the market,” DeCrosta said.
Larisa Ortiz of Streetsense highlighted the importance of aligning retail offerings with the demographics of the area. She noted that Downtown Brooklyn’s diversity could be a strength if each subdistrict—like Fulton Mall or Livingston Street—embraces a clear and complementary brand identity. Ortiz also stressed that attracting tenants requires a coordinated effort among property owners to offer the curated experiences consumers now expect.
From a landlord’s perspective, Alyssa Zahler of Two Trees Management pointed out regulatory hurdles like zoning constraints and liquor licensing as barriers for smaller businesses and local, “mom and pop” entrepreneurs. Zahler added that developers need to take risks and curate retail spaces to build vibrant districts, including an emphasis on streetscape.
Vladimir Bautista, co-founder of Happy Munkey, shared his perspective as the first legal cannabis retailer on Fulton Mall. Bautista praised Downtown Brooklyn for its rich cultural and economic diversity, which he said aligns with his company’s mission to foster inclusivity. “We see Fulton Mall as a cornerstone of Brooklyn, where community, culture, and commerce intersect,” he said, adding that his team is committed to hosting educational events and collaborating with local stakeholders to build community. Bautista and DeCrosta both urged prospective Downtown Brooklyn retailers to not be afraid of larger storefront footprints to better serve their customer base, and in turn, drive a more robust business.
Shaping the Future of Retail
The second panel shifted focus to broader trends and policy changes shaping the future of retail. Jonathan Bowles of the Center for an Urban Future highlighted the dramatic rise in experiential retail and food businesses, noting that these sectors are critical as traditional retail declines. Bowles noted that in 2004, there were 102,000 more retail jobs than restaurant jobs in New York City, while today there are 30,000 more restaurant jobs. While food halls across the city have struggled, Aron Gooblar of Washington Square Partners pointed to the success of City Point’s DeKalb Market Hall, which has thrived. Gooblar attributes this to the influx of Downtown Brooklyn residents during and after the pandemic. “Food and entertainment are the new anchors for retail,” Gooblar said, adding that family-friendly offerings like Alamo Drafthouse Cinema and Court 16 tennis and pickleball club have helped create a destination experience at City Point.
Co-founder of Court 16, Anthony Evrard shared his company’s strategy of building community through innovative programming. “We aim to provide families with not just an activity, but an experience,” Evrard said, highlighting the importance of multi-functional retail spaces that combine shopping, recreation, and dining. He credited City Point’s tenant mix and diversity of programming for fostering a dynamic, family-friendly environment.
Looking Ahead: Collaboration and Action
The breakfast closed with a focus on solutions for Downtown Brooklyn’s retail challenges. Panelists agreed that more coordinated efforts among property owners, policymakers, and businesses are essential. Gooblar emphasized the need for proactive public investments and innovative uses of public space, while Ortiz highlighted the critical role of business improvement districts (BIDs) in managing diverse, multi-landlord retail environments like Fulton Mall. Bautista stressed the importance of community engagement in making retail spaces welcoming and inclusive.
Bowles called for more flexibility in city regulations to adapt to evolving retail models, particularly for food and experiential businesses. He also underscored the importance of addressing New York’s housing crisis, noting that increasing residential density directly supports retail vibrancy. Bowles also noted that large-format spaces, such as those previously occupied by drugstores, are contributing to persistent vacancies across the city, and that there could be a policy put in place that incentivizes landlords to fill them.
As Downtown Brooklyn continues to evolve, the insights shared at DBP’s Real Estate breakfast illustrate a clear path forward: embracing the neighborhood’s diversity, investing in experiential and community-focused retail, and fostering collaboration across sectors. With these strategies, Downtown Brooklyn will be able to not only recover but thrive in the changing retail landscape.
