January 28, 2016

“Perfect Storm” of 421a Expiration, Supply Glut Hanging Over Brooklyn Market

Feature

The Real Deal

Brooklyn’s commercial real estate market had a record year in 2015, but 2016 is looking a lot less rosy. Sales volume is likely to take a big dip this year, according to a new report by brokerage TerraCRG.

Driving the expected dip is a sharp decline in the number of development sites sold, TerraCRG reckons. Sales of existing buildings, in contrast, could still remain strong. The brokerage expects new development deals to fall from more than $2B to less than $700M. “We’re not going to see massive rental development sites trading,” Cohen said at a media briefing at TerraCRG’s office Wednesday morning.

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