Brooklyn Investment Sales Volume May Be Creeping Back Up
More money changed hands in commercial real estate deals in Brooklyn in the first half of the year than in the last two, slower years, with a total of $4B worth of trades.
That total figure represents a 44% increase over the same time last year, according to TerraCRG’s half yearly report, and follows two years of declines. However, much of that increase was driven by the $805M sale of Starrett City and without that outlier deal, the increase was a more muted 12%.
Overall, there were 597 trades in the first six months of the year, a 14% decrease on last year. That dip is because of a shortage of inventory, according to the report.
Retail assets saw the biggest drop in transactions, falling 42% year over year. The transactions were valued more highly, however, with dollar volume jumping by 8%. Without including Starrett City, multifamily dollar volume jumped 6%.
Last year, investment sales dollar volume in Brooklyn hit approximately $6.3B, down nearly 20% from the year before, according to TerraCRG’s 2017 market report. Many investors say there is still plenty of value in parts of the borough, particularly in places with good access to the subway.
In Manhattan, there was a slowdown in deals in the first half of the year, with transactions on pace to finish with fewer than 250 deals for the year, according to Colliers International. That was a 50% drop from the peak of the market in 2015 and 2016.