DOWNTOWN BROOKLYN — MARKET VALUES IN DOWNTOWN BROOKLYN’S COMMERCIAL REAL ESTATE and office buildings have grown in the midst of a shift in demand for space, as well as in northern and southwestern parts of the borough, according to a new report released on Wednesday, Aug. 7, from State Comptroller Thomas P. DiNapoli. The report, which covers the five boroughs, pointed out that these higher market values are being fueled by growth outside of traditional Midtown office districts, particularly Downtown Brooklyn. Twenty ZIP codes make up 80% of all office market values in the City, with growth in Downtown Brooklyn and Long Island City exceeding all but two ZIP codes in Manhattan since 2020. Fort Greene also saw business growth in information and financial services. Between 2019 and 2023, parts of Williamsburg and Greenpoint added almost 483 office-using businesses, growing by 68%. Bedford-Stuyvesant added almost 346 office-using businesses, growing over 101%. Other neighborhoods in Brooklyn that saw significant growth include Crown Heights North, Ocean Hill and Brownsville.
Despite some buildings facing declines in value, the city’s overall property tax base from office properties is likely to remain resilient. Ultimately, the city’s office real estate market will continue to evolve, with the fate of the market remaining closely tied to the business environment and talent pool in the city.
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