Brooklyn records nearly $ 5 billion in investment sales in the first half of 2022

Brooklyn records nearly $ 5 billion in investment sales in the first half of 2022

TerraCRG, Brooklyn’s leading commercial real estate brokerage firm, today released the Brooklyn Market Report Semi-Annual 2022, analyzing investment sales transactions by asset class in Brooklyn.

Despite the volatility of the capital markets, Brooklyn Investment Sales in the first half of 2022 showed nothing but stability and strength with a total dollar volume of nearly $ 5 billion, a direct continuation of 2nd mid 2021.

Transaction volume was also consistent with the previous 6-month period, with 790 investment sale transactions closed in the first half of this year, reflecting an average transaction size in Brooklyn of approx. $ 6.3 million.

On a quarterly basis, total dollar volume increased in the second quarter of 2022, 41% quarter-over-quarter, to $ 2.9 billion.

Despite an unprecedented global pandemic, the Brooklyn market experienced a remarkable recovery in 2021, returning to pre-pandemic levels – and then some. Since H1 2019, the district has seen a 90% increase in total dollar volume and there has also been a 120% increase in dollar volume since H1 2020. Staying confident in the depth and diversity of its neighborhoods and the market, Brooklyn’s unrivaled resilience has given is the ability to transform and reinvent its resources, reflected by the solid market performance of this first half.

Once again, large institutional transactions were a highlight in the Brooklyn market; not only in the first quarter of 2022, but also in the first half of the year. The top 10 transactions by dollar volume accounted for 40% of the district’s total dollar volume for the first half of 2022. The “Greater Downtown Brooklyn” region (which includes brownstones Brooklyn and Red Hook) saw the transaction once again largest at 640 Columbia Street, leased by Amazon, for $ 332 billion. With $ 1.75 billion in transactions in the first half of 2022 – a 270% increase from last semester’s $ 474 million – activity in this region represented a significant portion of the overall dollar volume.

The largest number of transactions – 177 in total – took place in the north-central neighborhoods which include Bedford-Stuyvesant, Bushwick, Crown Heights, Crown Heights South and Ocean Hill. Counting 22% of transactions in the first half of the year, the North Central region saw a 108% increase from the region’s 85 total transactions in the first half of 2021.

A rebound in dollar volume has occurred across all asset types year over year, with the industry leaping 352% from $ 204 million in the first half of 2021 to $ 921 million in the first half of 2022 thanks to increased demand for last mile logistics; multi-family up 261% from $ 374 million to $ 1.35 billion due to high occupancy rates; mixed use up 168% from $ 380 million to $ 1 billion; retail building sales up 86% from $ 170 million to $ 317 million; sales of office buildings up 43% from $ 82 million to $ 117 million; residential development up 90% from $ 301 million to $ 572 million from accelerated projects following the impending expiration of 421-a.

“Brooklyn continues to be a strong benchmark in the New York City investment sales market, with solid dollar volume across all types of assets,” said Ofer Cohen, founder and CEO of TerraCRG. “$ 5 billion worth of deals over a 6-month period, for two consecutive 6-month periods is a big deal and was last seen in 2015.”

Access to the full 2022 Brooklyn Market Semi-Annual Report is available here.

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