January 28, 2016

With Loss of 421a, Brooklyn Could See $3.5B Drop in Commercial Real Estate Sales

Feature

Commercial Observer

TerraCRG President Ofer Cohen addressed the issue at his firm’s annual end-of-year market report meeting this morning. Mr. Cohen said that last year the borough saw more than $9.5 billion in commercial real estate sales, and this year that number will drop to $6 billion or $7 billion.

Of the $9.5 billion, $2.1 billion was in residential development-zoned sites in the borough.

“We are going to see some transactions this year of sites that already got their entitlement for 421a,” Mr. Cohen said. “You are going to see some sales that are pure condo sites in the best parts of Brooklyn. But you are not going to see massive, 100,000- to 300,000-square-foot rental development sites trading until a new legislation comes to fruition. And according to my understanding REBNY is being very pessimistic.”

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