Neighborhood grocery has re-emerged as one of the most reliable anchors in Brooklyn retail. Instead of sprawling 30,000+ square foot supermarkets, today’s operators are thriving in smaller footprints — often 8,000–15,000 SF — that integrate directly into mixed-use projects and dense residential corridors. For landlords, these tenants bring long leases, steady traffic, and community value.
NYC Grocery Gaps Remain: As of 2024, many Brooklyn neighborhoods are still below the citywide average for grocery square footage per capita. These gaps create strong demand for smaller operators to serve local populations.
Policy Incentives Through FRESH: NYC’s Food Retail Expansion to Support Health (FRESH) program has become a catalyst for neighborhood grocers. Since launch, 28 projects have been approved, adding 700,000+ SF of grocery space across the five boroughs, with 22 completed to date. Beyond zoning relief, the program offers tax incentives and floor area bonuses that make it financially viable for operators to secure sites in underserved areas.
Consumer Spending: Grocery remains one of the most resilient retail categories. In 2025, U.S. grocery spending rose 3.2% YoY (US Census / FMI), reinforcing that food retail is one of the most stable tenants in the current environment.
Grocery operators need realistic rent ranges — typically $30–$60 PSF in Brooklyn and Queens. Above that threshold, margins become difficult to sustain.
Ideal footprints: 5,000–20,000 SF, with 11,000–15,000 SF being the sweet spot for operators like CTown or Met Fresh.
Site requirements: wide frontage, strong visibility, ground floor access, and loading areas.
67-09 Fresh Pond Road, Ridgewood: Verada leased an 11,500 SF space to Met Fresh. The deal showed how neighborhood grocers thrive when spaces are properly sized and priced within the $30–$60 PSF band.
340 Myrtle Avenue, Brooklyn: A Met Fresh opened within a mixed-use development, bringing fresh food access to Fort Greene and anchoring the project’s retail component.
FRESH Program Projects: Of the 22 completed FRESH projects, many are in Brooklyn and Queens. These include supermarkets using footprints well below 30,000 SF — proving that smaller operators can anchor dense, mixed-use neighborhoods when supported by city incentives.
Daily Traffic Drivers: Grocers generate repeat visits and consistent foot traffic, lifting co-tenants and strengthening retail corridors.
Long-Term Stability: Grocers typically sign 10–15 year leases and invest heavily in buildouts, providing landlords with secure tenancy.
Leverage Incentives: Working with tenants who qualify for FRESH benefits can help landlords attract operators in neighborhoods that otherwise wouldn’t pencil out.
Right Rent, Right Size: Landlords with 8,000–15,000 SF ground-floor spaces priced at $30–$60 PSF are in the best position to capture this tenant demand.
The neighborhood grocer has re-emerged as a cornerstone of Brooklyn retail. With support from the FRESH program, operators are expanding into dense, underserved neighborhoods in formats that are smaller, more efficient, and financially viable. For landlords, aligning with grocery tenants at the right rent and scale means securing stable, long-term anchors that build stronger communities and more resilient retail portfolios.