Subject to Inspection: Brooklyn Spaces and Issues
Don't Stifle Our Economic Recovery By Blaming All Real Estate Projects
Are the green shoots of economic recovery pushing through a thawing real estate market in Brooklyn? The COVID-19 pandemic all but froze up the Brooklyn commercial real estate market in 2020, but the year ended on a rebound that forecasts a stronger 2021, according to the annual Brooklyn Market Report just released by Brooklyn-focused brokerage, TerraCRG this week. Despite the lockdown pausing business last spring, more than $4 billion dollars of commercial assets still exchanged hands, with a dollar volume and transactional volume decrease of just 22 percent and 24 percent, respectively.
“The good news is the last quarter of the year experienced a rebound in activity, accounting for 30 percent of last year’s total dollar volume – momentum that we believe bodes well for a stronger 2021,” said Ofer Cohen, founder, and CEO of TerraCRG. “Brooklyn will continue to outpace Manhattan in the recovery. Our projections on an annualized basis forecast a 35 percent dollar volume increase by the end of 2021 to $5.5 billion.”
Among all asset classes, multifamily transactions had the highest dollar volume at $1.049 billion – down 8 percent from 2019 and yet still accounting for 25 percent of the year’s total dollar volume. Though activity across nearly all asset classes was down, residential development experienced an 18 percent increase in dollar volume to $791 million. A welcome sign for a Borough chronically suffering, even now with pandemic-related vacancies, from a housing shortage that keeps rents at unaffordable levels.