Report: 2011 Was a Boom Year for Brooklyn Real Estate
By Dennis Holt
Brooklyn Daily Eagle
BROOKLYN — A recently released report from Ariel Property Advisors shows strong performance in all sectors of the Brooklyn real estate market during 2011.
According to the report, Brooklyn saw 377 commercial real estate transactions in 2011 consisting of 562 properties and totaling about $1.8 billion.
Most of this activity took place in Bedford-Stuyvesant, Bushwick and Crown Heights, the area around Barclays Arena and Greenpoint-Williamsburg. The data show that Bed-Stuy, Bushwick and Crown Heights had more than 40 percent of all the borough's transactions in 2011.
In other parts of the real estate market, Brooklyn’s apartment-house sector saw 223 transactions involving 285 buildings totaling about $925 million, or about 51 percent of Brooklyn's total dollar volume of real estate transactions.
In general, prices per square foot in the Downtown Park Slope areas were the highest in the borough, reaching an average of $300 per square foot. Williamsburg was right behind at $265.
The borough's new development market began to stir again last year with 47 transactions involving 126 properties for about $200 million.
The Barclays Arena area is definitely a hot spot. For example, retail rents are beginning to command more than $100 per square foot, which is increasing property values.
Brooklyn condos traded at an annual price per square foot of $644. Most of the transactions took place in Downtown Brooklyn and in Park Slope. This volume could become a trend in the coming years due to the influx of young families.
Residential rents are up especially in Downtown, Park Slope, Williamsburg and Greenpoint and should continue to rise this year.
The authors of the report predict that 2012 will be a breakthrough year for Brooklyn, with major increases in activity expected for Downtown Brooklyn, Park Slope, Williamsburg and Greenpoint.
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