Brooklyn Investment Sales Activity Steady in 2025’s First Half
The number of industrial trades, though, plunged
By Isabelle Durso July 15, 2025 2:43 pm
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The number of Brooklyn multifamily, retail, office and development site sales held up pretty well during the first half of 2025, but activity in the borough’s industrial market declined markedly, according to a new report from TerraCRG.
During the first half of this year, Brooklyn’s commercial real estate market recorded a total transaction volume of approximately $2.6 billion across 549 sales, compared to $3.3 billion across 558 transactions during the first half of 2024, the report found.
Of the top 10 transactions in the borough in the first half of this year, four deals rang in at more than $100 million, according to the report. That didn’t include Fetner Properties, MCB Real Estate and Farallon Capital Management’s $209.5 million purchase last week of the 30-story residential building at 240 Willoughby Street in Fort Greene, which Commercial Observer first reported.
“Overall, transactions stayed steady compared to the first half of 2024, and we’ve seen solid year-over-year improvement in the multifamily, retail, office and development sectors,” TerraCRG CEO Dan Marks said in a statement to CO.
Multifamily sales in Brooklyn totaled $730 million across 140 transactions during the first half of 2025, a 28 percent increase from the deal volume recorded this time last year, according to TerraCRG’s report.
The biggest multifamily sale recorded during the period was Pacific Urban Investors’ $127.5 million purchase in January of Leonard Pointe, a 188-unit apartment building at 395 Leonard Street in Williamsburg, as CO previously reported.
Meanwhile, Brooklyn’s office market saw a total deal volume of $132 million across 16 transactions, and the borough’s retail and special-use market saw a large deal in SomeraRoad’s acquisition of the 282-key former Hotel Bossert in May for $100 million. SomeraRoad plans to convert the property into housing.
As far as development in Brooklyn, there were 89 transactions totaling $518 million during the first half of this year, mostly from developers eyeing new projects in the trendy Williamsburg neighborhood.
The industrial market did not fare as well, with a total dollar volume of $172 million across 32 transactions, according to the report. That represents a 51 percent decrease in dollar volume and a 37 percent decrease in transactions from last year.
In a webinar on the report, Marks said most Brooklyn industrial properties are owned and operated by the same companies, meaning they’re not looking to sell. Plus, uncertainty in the market caused by tariffs is causing a slowdown in decision-making, he said.
“Even with some uncertainty around the upcoming primaries, global tensions and new tariff discussions, the market has held up pretty well so far this year,” Marks said. “Interest rates have stayed flat since January, which has helped provide some stability.”
Isabelle Durso can be reached at idurso@commercialobserver.com.
