Press Releases Archive
Sean R. Kelly, Esq.
Partner
Ariel Property Advisors
Stephen Vorvolakos
Director - Investment Sales
Ariel
Benjamin Vago, Esq.
Director - Investment Sales
Ariel Property
NEW YORK, NY – February 9, 2023 – In 2022, Brooklyn saw a 28% year-over-year increase investment sales to just over $10 billion, the first time ever the borough has cracked the $10 billion mark in dollar volume and surpassing the previous record of $9.19 billion from 2015, according to Ariel Property Advisors 2022 Brooklyn Year-End Commercial Real Estate Trends report. Transactions in the borough also increased 20% from the previous year to 1,226.
Volume 2022 vs 2021
“Institutional money helped play a major role in the Brooklyn market, as 2022 finished the year with 16 transactions of $100+ million, nearly doubling the nine from 2021,” said Ariel Partner Sean R. Kelly, Esq. “Additionally, several asset classes saw record highs in pricing, and the Multifamily & Industrial/Warehouse classes specifically had their best year ever in terms of dollar volume.”
Stephen Vorvolakos, Director, Investment Sales, added, “Despite several rate hikes and many regulatory and economic concerns, Brooklyn’s investment sales market made tremendous strides in 2022. Building off 2021, which saw rents and vacancy return to pre-pandemic levels, many investors reemerged from the sidelines and helped propel Brooklyn to its best year to date.”
Benjamin Vago, Esq., Director, Investment Sales, noted that last year’s sales provide additional evidence that multifamily investors are changing their preferences. “In Brooklyn’s multifamily sales in recent years, there has been a noticeable shift towards smaller, primarily free-market buildings that are not subject to rent stabilization,” he said. “Small multifamily buildings with fewer than six units accounted for over 50% of the multifamily transactions in 2022. This is a trend we expect to continue into the foreseeable future as investors more aggressively pursue value add opportunities.”
The following is a summary of the report:
Multifamily:
Development:
Industrial/Warehouse/Storage:
Commercial:
To read the full Brooklyn 2022 Year-End Commercial Real Estate Trends report, click HERE.
Real Estate Timeline
For more information, please contact: Gail Donovan at 212.544.9500 ext. 19 or gdonovan@arielpa.com.
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Ariel Property Advisors is a New York City-based commercial real estate services and advisory company offering expertise in three core areas: Investment Sales, Capital Services and Research & Advisory. Our Investment Sales Group specializes in all major commercial asset types throughout the New York metropolitan area, the Capital Services Group provides clients nationwide with custom-tailored financing solutions and the Research & Advisory team delivers timely market reports, empowering both our professionals and clients. Additionally, our recent strategic partnership with GREA (Global Real Estate Advisors), a nationwide network of independent real estate investment services companies, further expands our reach and capabilities. To learn more, please visit us at arielpa.nyc.