DUMBO Still Most Expensive Brooklyn Neighboorhood

By Janet Upadhye on July 24, 2012 4:42pm 

DUMBO — DUMBO remains one of New York City’s most expensive neighborhoods, recently ranked eighth by Property Shark behind seven Manhattan neighborhoods including Tribeca, Soho and Chelsea. DUMBO entered the list of most expensive New York City neighborhoods last year.

DUMBO had a median sale price of $901,151 in the first quarter of 2012, compared to the most expensive neighborhood, TriBeCa, where the median price is $2,315,000. But DUMBO is more expensive than the Upper West Side, which had a median sale price of $888,500, according to Property Shark.

And according to MNS Real Estate Company’s June 2012 report, DUMBO is at the top of the Brooklyn rental market and has been for over three years. And prices are only getting higher.

A one bedroom apartment in DUMBO rents for an average of $3,589 a month, while neighboring Brooklyn Heights one-bedrooms rent for $3,035.

With waterfront views of Manhattan, Brooklyn Bridge Park, the famous Grimaldi's Pizzeria, and historic cobblestone streets it's no wonder people want to live in DUMBO, a small neighborhood by the river.

But some believe that it is actually the surge in DUMBO tech companies that is causing the high demand for rentals in the neighborhood.

“Whenever you have a creative daytime population is a community it always become more attractive for those people to also live in the neighborhood,” said Alexandria Sica of DUMBO Improvement District and also a partner in new coalition, Brooklyn Tech Triangle. “DUMBO’s desirability as a residential neighborhood is due in large part to creative start-ups and techies floating around the neighborhood during the day.”

The demand for space in DUMBO for new companies has been so high that DUMBO Startup Lab opened its doors in January to provide affordable space and services to small start-ups new to the neighborhood. They provide shared office space, a pantry, and conference spaces to their members.

“Since we opened, we have added new members every month,” said John Coghlan of the lab. “It’s a great creative collaboration space.”

Coined the new Silicon Beach by local real estate agents, there are over hundreds of tech companies in DUMBO with more sprouting up every day. Brooklyn’s “tech triangle” which also includes the neighboring Navy Yards and Downtown Brooklyn is currently home to 523 tech companies. That number is expected to increase by twenty percent in the next three years, adding over 8,000 new employees to the tech roster.

“DUMBO has achieved an interesting mix of residences and businesses,” said Sica. “And the draw to the area is only increasing.”

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