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

August 5, 2022 TerraCRG

Photo: TerraCRG

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TerraCRG, Brooklyn’s leading commercial real estate brokerage firm, released today its half-year 2022 Brooklyn Market Report, analyzing investment sales transactions by asset class across Brooklyn.

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

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

On a quarterly basis, the total dollar volume increased in Q2 2022, 41% quarter over quarter to $2.9 billion.

Withstanding an unprecedented global pandemic, Brooklyn’s market made a remarkable recovery in 2021, returning to pre-pandemic levels – and then some. Since H1 2019, the borough has witnessed a 90% increase in total dollar volume and there has also been a 120% uptick in dollar volume since H1 2020. Remaining confident in the depths and diversity of its neighborhoods and market, Brooklyn’s unmatched resilience has given it the ability to transform and reinvent its assets, reflected by this first half’s solid market performance.

Once again, large institutional transactions 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 borough’s total dollar volume for the first half of 2022. The “Greater Downtown Brooklyn” region (that includes brownstone Brooklyn and Red Hook) once again saw the largest transaction with 640 Columbia Street, tenanted by Amazon, for $332B. With $1.75B worth of transactions in the first half of 2022 – a 270% increase from last half-year’s $474M – activity in this region accounted for a significant portion of the overall dollar volume.

The greatest number of transactions – 177 total – took place in the North-Central neighborhoods that include Bedford-Stuyvesant, Bushwick, Crown Heights, Crown Heights South, and Ocean Hill. Accounting for 22% of transactions in the first half of the year, the North-Central region witnessed a 108% increase from the region’s 85 total transactions in H1 2021.

A dollar volume rebound occurred across all asset types year over year, with industrial jumping 352% from $204M in H1 2021 to $921M in H1 2022 thanks to the increased demand of last-mile logistics; multifamily rising 261% from $374M to $1.35B due to high occupancy rates; mixed-use increasing 168% from $380M to $1B; retail building sales rising 86% from $170M to $317M; office building sales increasing 43% from $82M to $117M; residential development growing 90% from $301M to $572M from expedited projects as a result of the looming expiration of 421-a.

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

Access to the full Half-Year 2022 Brooklyn Market Report available here.