NEW YORK CITY—2014 was the “year of the boroughs” for New York City. After the correction in the market in 2009-2010, we saw a flight to safety with Manhattan sales leading the recovery. In 2011, Manhattan generated 32% of the sales, even though the borough accounts for only 17% of the city's properties. This year, it looks like that level will decline to a more proportionate share of the sales with only 17% of the sales, meaning that the boroughs should end up with about 83% of the city's activity.

Concurrently, there has been a big increase in investment sales values in Manhattan with a projected 24% increase in sales value from 2014 over 2013. Whereas the increase in sales value in Brooklyn and Queens were only 14% and 5%, respectively, with the Bronx showing a slight 1% drop. This would suggest that there is more upside in borough values, as Northern Manhattan has already witnessed this with a 23% increase in value.

What I find more interesting is that the average Manhattan building sale in the first three quarters of 2014 was at $1,303/SF compared to the boroughs' $285/SF. My sense would be that borough rents on average are not a fifth of Manhattan's. What is skewing the numbers now are the Manhattan retail sale prices which, in some cases, achieve over $10,000/SF. Brooklyn is now having some of its own record price points. Our office recently closed on two development sites on Bedford Avenue at $2,500/BSF and $3,200/BSF. These types of sales should narrow the gap.

On the leasing side, it is also clear that in some cases Brooklyn or Queens is the preferred destination for tenants. This was certainly the case for Etsy, as it moves into 117 Adams St. in the Dumbo Heights neighborhood of Brooklyn. In the same fashion, we anticipate seeing many tech companies looking at Long Island City due to Roosevelt Island's new Cornell tech campus. Many businesses have started to relocate to the Bronx, including IT consulting firm Doran Jones and online grocer Fresh Direct, signifying that there is now appetite citywide.

REBNY has seen this trend and realized the need for more programming in the boroughs. This has also been at the request of many senior Manhattan based agents whose clients have requirements outside of Manhattan. Although REBNY already has a thriving residential committee there, they established the Brooklyn Commercial Brokerage Committee, having now already had several meetings including ones at RXR's 470 Vanderbilt Ave. The committee also held their first ever social event at the Brooklyn Winery, which was standing room only.

The 2015 initiate will be to establish a Queens Commercial Brokerage Committee. Leadership is already forming with many owners volunteering space for the meetings. After critical mass is established, the Commercial Board of Directors will look to establish a Northern Manhattan/Bronx and Staten Island Committee. Once these commercial brokerage committees are established in each of the boroughs, then sub committees specializing in investment sales, as well as retail and office leasing, might form.

This is, without a doubt, an opportunity for all brokers to exchange business back and forth. Manhattan brokers will undoubtedly refer dozens of assignments that they may not be able to assist with, or collaborate with borough based brokers who can help facilitate. It is important to remember that REBNY is the largest real estate association that specifically serves New York City, so they have the infrastructure to make this happen.

It is important to remember, that when REBNY lobbies for real estate and New York City, it affects all the boroughs. Any change to the building code or taxes will have an impact citywide. REBNY has once again shown that it is responsive to all of its members and the city's needs.