Brooklyn records nearly  billion in asset sales in the first half of 2022

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

TerraCRG, Brooklyn’s leading commercial real estate brokerage firm, today released its 2022 semi-annual Brooklyn Market Report, which analyzes investment sale transactions by asset class across Brooklyn.

Despite volatility in capital markets, Brooklyn Investment Sales showed nothing but stability and strength in the first half of 2022, with total dollar sales approaching $5 billion – a direct follow-up to Q2nd half of 2021.

Transaction volume was also consistent with the previous 6-month period, with 790 completed investment sale transactions in the first half of this year, for an average deal size in Brooklyn of approximately $6.3 million.

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

Despite an unprecedented global pandemic, the Brooklyn market made a remarkable recovery in 2021, returning to pre-pandemic levels — and beyond. Since the first half of 2019, the district has seen a 90% increase in total dollar volume, and since the first half of 2020, there has also been a 120% increase in dollar volume. Brooklyn remains confident in the depth and diversity of its neighborhoods and market, and has distinguished itself for its unmatched resilience It’s ability to transform and reinvent its assets, which is reflected in solid market performance this first half.

Once again, large institutional deals were a major 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 in the first half of 2022. The Greater Downtown Brooklyn region (which includes Brownstone Brooklyn and Red Hook) again saw the largest transaction at 640 Columbia Street, leased by Amazon for $332 billion. With transactions worth $1.75 billion in the first half of 2022 — a 270% increase from $474 million in the last half-year — activity in this region accounted for a significant portion of total dollar volume.

Most transactions — 177 in all — took place in the North-Central neighborhoods, which include Bedford-Stuyvesant, Bushwick, Crown Heights, Crown Heights South, and Ocean Hill. With 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.

Year-on-year, all asset types have seen dollar volumes recover, with the industry up 352% from $204 million in H1 2021 to $921 million in H1 2022, thanks to increased demand for last-mile logistics; Multifamily Homes up 261% from $374M to $1.35B on high occupancy; Mixed Use Up 168% From $380M To $1B; Retail building sales increased 86% from $170 million to $317 million; Office building sales up 43% from $82 million to $117 million; Residential development grows 90% from $301 million to $572 million on accelerated projects as a result of upcoming expiry of 421-a.

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

To access the full Brooklyn Market Report for the first half of 2022, click here.

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