At the end of the 3rd quarter of 2023, the Brooklyn investment sales market showed a total dollar volume of almost $3.7 Billion with a total of 834 investment sale transactions in Brooklyn, year to date.
Brooklyn 2023 Third Quarter Market Report
Brooklyn’s investment sales market was resilient, faring better than the broader NYC market, despite headwinds from an unprecedented pace of interest rate increases and the expiration of Affordable New York (AFNY). Investment Sales volume in Brooklyn is at near peak levels, posting the second highest dollar volume since 2015 with over $9B of transactions in 2022.
Brooklyn 2022 Market Report
2022 was a record year for Multifamily rent growth and investment sales volume, which increased 70% compared to 2021. Despite a banner year for Multifamily assets, rising interest rates in the second half of 2022 coincided with an 8% drop in total Multifamily transaction volume in the second half of the year compared to the first half. Multifamily asset pricing also fell off in the second half of 2022, with the average price per unit dropping to $342k, compared to $395k in the first half of 2022.
Brooklyn 2022
Multifamily
Market Report
Investors demand for mixed-use assets was remarkable despite challenges with price discovery and high interest rates. Total transaction volume increased 18% year-over-year and decreased 22% in the second half of 2022 compared to the first half of the year. Over $1B worth of mixed-use assets traded hands this year in the greater downtown area, highlighting sustained demand for retail and ” multifamily assets that offer a live-work-play dynamic in transit corridors.
Brooklyn 2022
Mixed-Use
Market Report
$934M of Residential Development Sites were sold in 2022, representing a 13% decrease in transaction activity compared to 2021. The expiration of the Affordable New York 421A tax abatement and the increase of the construction loan index rate (SOFR) from .05% to 4.31% lead to a 39% drop in total transaction volume in the second half of the year.
Brooklyn 2022
Resi Development
Market Report
Retail investment sales volume increased 42% year-over-year but fell 42% in the second half of 2022, compared to the beginning of the year. The decrease in transaction volume in the second half of the year comes amidst lenders becoming more selective on lending in this sector.
Brooklyn 2022
Retail Market Report
$1.26B worth of Industrial assets traded hands in 2022, representing a 43% year-over-year increase. The Brooklyn Market remains undersupplied with a sub 2% vacancy rate. However, the dollar volume fell off by 64% in the second half of 2022 with rising rates and uncertaintysurroundingtheleasingstrategyofe-commercetenants.
Brooklyn 2022
Industrial
Market Report
The transaction volume of Special Use assets increased 13% year-over-year. Despite the uptick in transaction volume this year, dollar volume activity dipped 26% in the second half of 2022 compared to the first half of the year.
Brooklyn 2022
Special Use
Market Report
Total Office dollar volume increased 148% year-over-year. This increase was due to three transactions (9-11 Metrotech, 3 Metrotech and 6010 Bay Pky) which totaled 71% of Office dispositions. Office transaction volume was the lowest of all asset classes with vacancy rates in Brooklyn hovering around 19.4%
Brooklyn 2022
Office
Market Report
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