Real estate commands huge prices in New York City. Usually, the further away from the city the more affordable space you will find. Unless you are wealthy, it will be prohibitive to find a place to live and have a shop in Manhattan or Brooklyn. Also, most of the rentals are apartments and it is impractical to have a shop in one of them (if the building lets you in the first place).
An alternative is to rent woodworking space by the hour. There are such places in Brooklyn, you just have to search for them.
If you are willing to commute 1.5 to 2 hours to work, each way, there are houses for rent in places like Rockaway, Queens, New Jersey, maybe Staten Island, Rockland County and counties north of Westchester like Putnam and Dutchess. I don't know about the Bronx, there used to be affordable lofts for artists some time back, prices have probably gone up. Keep in mind that if you rent in the suburbs you will likely need a vehicle, too.
As for the safety factor, Manhattan is very safe (I live in NY City), most crime happens in selected neighborhoods in any borough but things change rapidly because of gentrification.
In addition to Condon, there are several places to buy wood (even Craigslist). Lenoble lumber in Long Island City is one. A very good resource is the North New Jersey Woodworkers association, you can get on their listserve without being a member, those guys know a lot.
Hope this helps