NEW YORK CITY—The Brooklyn commercial sales market continued its torrid pace in the second half of 2015, resulting in a record-setting sales volume in excess of $9.5 billion in sales for the year.
Brokerage firm TerraCRG in its sixth annual year-end market report states that commercial dollar sales volume in 2015 rose 39% from $6.85 billion in 2014 to more than $9.5 billion last year. The firm verified a total of 1,895 commercial sales in Kings County in 2015.
"The investments sales market in Brooklyn saw a 10-fold increase in the last six years, from $1-billion worth of transactions at the end of the recession to just under $10 billion last year," says Ofer Cohen, founder and president of TerraCRG. "Regardless of any short term effect the 421a expiration may have on new residential development of rental buildings—we expect Brooklyn to continue its long term trajectory, with the continued strength of multifamily sales and industrial to office conversion, as new residents and businesses are eager to call Brooklyn their home."
Sales in the second half of last year followed up a very strong first two quarters of 2015. In its report on the first six months of 2015, TerraCRG stated the commercial investment sales market in Brooklyn saw a $2-billion increase in commercial sales as compared to the same period a year earlier.
The brokerage firm reported that the 1,011 transactions involving multi-family, mixed-use, development, retail, industrial/office and other properties in Brooklyn totaled $5.13 billion for the first six months of 2015, a 61% increase from the nearly $3.19 billion posted in the first two quarters of 2014.
In its year-end report, the brokerage firm reports there was a slight decrease of transactional volume. The average transaction in Brooklyn rose 47% from $3.4 million to $5 million. The increase in total dollar volume stems from unprecedented asset appreciation, TerraCRG notes.
The largest year-over-year growth in total dollar volume was in the Industrial/Office asset class, which increased 85% from $613 million in 2014 to more than $1.1 billion in 2015. Another sector that prospered in 2015 was residentially-zoned development sites, which saw a total of $2.1 billion in sales activity, 10 times the volume posted in 2010.
Other key takeaways from the report include multifamily boasting the highest dollar volume of any asset class in Brooklyn, totaling more than $3.3 billion in sales from 601 transactions. The Greater Downtown Brooklyn region had the highest dollar volume, with sales totaling more than $2.6 billion. The Bed-Stuyvesant/Bushwick/Crown Heights region had the highest number of transactions, for the sixth year in a row, with 508 trades.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
