Brooklyn commercial real estate transaction volume was stable last quarter, but sellers have recently been making significantly less money for their properties than they were at the end of last year.
Overall, the borough’s 258 investment deals totaled $936 million in the first quarter, down 34 percent from the previous quarter and 15 percent from the same period last year, according to the new report. Terra CRG.
Average closed deal value also fell 35% from the previous quarter, falling from $5.6 million to $3.6 million, according to the report.
Despite the reduction in size, the number of deals closed last quarter remained stable and was actually up slightly by around 2.4% from the 252 deals closed in the final quarter of 2023. Still, this is a slight decrease compared to the 273 deals completed in the first quarter of 2023. 2023 according to the report.
The multifamily and industrial markets continued to be a bright spot for Brooklyn and New York City as a whole. According to the report, the transaction volume of multifamily assets increased 43% in the last quarter compared to the previous quarter, and the transaction value of such assets increased by 21% to a total of $247 million.
“In the first quarter, we saw continued demand for buildings with free-market units.” matt cosentinosaid TerraCRG’s partner, executive vice president of sales, in a statement. “Rather than continue to wait for the rent-stabilized housing market to change, owners of rent-stabilized properties have started selling, and we believe this has spurred an increase in multifamily transactions.”
Still, transactions for housing development land have been sluggish recently. These sales resulted in an overall 63% decrease in value and a 29% decrease in transaction volume over the previous quarter.
Meanwhile, industrial sales totaled $185 million. This means dollar trading volume is down 42% quarter-on-quarter, but up 117% compared to the first quarter of 2023.
The biggest industrial trade in Brooklyn in recent months has been investment in own capital“Sales of self-storage facilities” in 1301 Avenue M to Heitman Capital Management According to the report, it was $46.9 million.
The region’s largest overall trade volume in the first quarter of this year was national gridSale of 16 acres of industrial development land by. 2731 W 12th Street, to Prologis For $51 million. National Grid had been trying to reduce the load on its site since late 2020.
Nick Trombola can be contacted at: ntrombola@commercialobserver.com.
