Lenny's Repair, a repaired phone wholesaler, signed a five-and-a-half-year lease for 14,000 square feet of flex warehouse and office space at 590 Smith Street in Red Hook, Brooklyn. The deal closed last week at $18 per square foot annually, translating to roughly $252,000 per year in rent.
Tri State Commercial Realty's Jack Sardar and Fred Betesh handled tenant representation. The lease structure reflects Red Hook's positioning as an emerging light industrial and flex space hub, where businesses needing both warehousing and office operations gravitate for its lower costs than Manhattan alternatives and proximity to Brooklyn's growing tech and e-commerce sectors.
For Lenny's Repair, the space supports its phone refurbishment and wholesale model, which requires significant storage for inventory alongside administrative functions. The $18 per square foot rate sits within Red Hook's current market band for flex properties, where demand remains steady from logistics providers, artisans, and light manufacturers seeking affordable, accessible space with loading capabilities.
Landlords in Red Hook benefit from sustained tenant interest despite recent vacancy upticks in outer-borough industrial markets. The neighborhood's waterfront access, transportation links via the F and G subway lines, and truck-friendly infrastructure continue attracting operators who need flexibility pricing below Manhattan's $30-$50 per square foot range for comparable space.
For competing tenants eyeing Red Hook, this deal signals continued viability at mid-range rates. However, rising property valuations threaten long-term affordability. Developers increasingly target Red Hook's remaining warehouses for mixed-use conversion, pushing out traditional industrial users. Lenny's Repair's five-and-a-half-year commitment provides stability in a market where lease terms grow shorter and rents climb annually.
The Smith Street location positions the company for customer