If you’re an investor in real estate, Brooklyn should be looking pretty good to you right now. Across the country, new home sales have flattened, and in many areas have begun to drift downward. That could be a worry for the economy as a whole, but experts and analysts that focus on the real estate sector continue to support Brooklyn as a place to invest. A just-issued report from PricewaterhouseCoopers (PwC) and the Urban Land Institute names Brooklyn the number-two Market to Watch for commercial investment. (The Dallas-Ft. Worth region was number one.)
The report, called Emerging Trends in Real Estate: U.S. and Canada 2019, focuses on large-scale investment property, both residential and commercial, and in that area, one has only to look at Brooklyn’s ever-changing, ever-growing skyline to see that the residential building boom continues unabated. Various outlets predict that over 20,000 new condominiums will go on the market in the coming two years or so all over the borough. There is new construction going on in every neighborhood, including those historically ignored. Many are rental projects, and many targeted for both sale and rental include “affordable” units, meaning offered at significantly less than full market rate, though falling well shy of what most people think of as affordable.
Other than ground-up new construction, the PwC report notes that Brooklyn has a large stock of old industrial buildings that are underused or empty, and these have been and continue to be attractive both to developers and to buyers/renters who enjoy the look and solidity of these old brick-and-wood-beam structures. Many of these building have been modernized for twenty-first century business tenants in the tech sector and high-tech manufacturing, and some, like Industry City in Sunset Park, have been converted to retail/industrial properties, with stores and restaurants on the lower floors making the buildings destination sites for not just for neighbors, but for people from across the city and suburbs. In Greenpoint, the nonprofit organization The Greenpoint Manufacturing and Design Center (GMDC) has refurbished seven industrial buildings and leased them to small-scale manufacturers and artisans, helping to create jobs and maintain the vitality of the neighborhood.
In many of the markets that the report records or anticipates price fall-offs, the reasons noted are rising prices of construction materials, possibly due to the current international tariff cat-and-mouse games going on, and the rise in interest rates resulting from generally good economic news.
Beyond the booming large-scale commercial investment, Brooklyn remains attractive to smaller investors and home buyers scouting through the many single-family and two-to-five-family houses available in almost every residential neighborhood. Sales of these types of buildings have remained strong, and prices, though they’ve plateaued in the past six to twelve months, remain at or near the highest they’ve been.
We’re happy that Brooklyn remains a highly attractive real estate market. This is our home, and we welcome everyone. We do hope, however, that our borough remains a place where anyone who wants to live here can find a home that they can afford. It’s the greatest place on Earth to live. Just ask us who already do.