According to a new report by Colliers International, a global commercial real estate firm, New York City's outer borough industrial real estate market, Brooklyn included, continues to show healthy gains during the 2nd quarter of 2022. The average asking rent for industrial space increased 2.5% as demand for space continues. According to Richard Warshauer, senior managing director for Colliers International “the market is robust”.
Brooklyn is divided into two “submarkets” North Brooklyn and South Brooklyn according to the CoStar firm, which provides information, analytics and marketing services to the commercial/industrial property industry. According to information provided by CoStar, the rentable building area (RBA) in North Brooklyn is 45,572,282 square feet distributed amongst 741 buildings. The availability rate is 3.9% and the average asking rent is $27.01 per square foot. The RBA in South Brooklyn is 27,849,718 square feet distributed amongst 340 buildings. The availability rate is 10.4% and the average asking rent is $19.41 per square foot.
The key Brooklyn neighborhoods with strong industrial real estate activity are Red Hook, East New York, East Williamsburg, the Brooklyn Navy Yard, the Brooklyn Army Terminal and Industry City.
On the sales end, with CRBE Investment Managements purchase of 640 Columbia Street in Red Hook for $330M, fully leased to Amazon and the Brooklyn Logistics Center purchase in East New York for $230M, also fully leased to Amazon, there is investor demand for fully leased warehouses in Brooklyn and the other outer boroughs.
Colliers report reveals that at $585.10 per square foot, the average sale price has increased 44.1 % year over year and has increased 54.5 % for a 5 year quarterly average of $378.78 per square foot.
If you are interested in selling your property or you know someone who is planning to sell their New York or Brooklyn property, whether a single family residential property, an apartment building, a commercial property, mixed use, multi family, coop or condo, vacant land or a development opportunity, call us. You will be very happy that you did.
We always bring our clients the top market price for their property and provide exceptional personalized service from initial consultation to closing.
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