Investment sales in Brooklyn rose to $3.5 billion in the first half of 2026, a 15% year-over-year increase, driven not only by multifamily, the borough’s traditional engine, but also by the development sector, according to GREA’s Brooklyn 2026 Mid-Year Commercial Real Estate Trends report. Transactions increased 4% to 497, the highest level of all New York City’s boroughs.
“What we’re seeing in Brooklyn is a fundamental market shift toward high-conviction development and institutional transactions,” said GREA’s Sean R. Kelly, Esq.. “Development activity was concentrated in neighborhoods such as Gowanus, Bedford-Stuyvesant, Crown Heights, and Williamsburg, and demand for retail in Williamsburg remained strong. In contrast, the borough’s rent-stabilized housing stock continued to account for a significant portion of the city’s distressed assets.”
Multifamily Highlights
- Multifamily remained the largest asset class at $1.46 billion, but dollar volume declined 19% year-over-year as the borough’s substantial rent-stabilized inventory continued to reprice amid elevated distress. Transaction volume remained relatively stable at 301 sales.
- The average price per square foot declined to $333, the lowest level since 2015, while the price per unit fell to $318,000 from $351,000, remaining well below the 2022 peak of nearly $397,000. Free-market, transit-oriented assets continued to command strong pricing, while deeply rent stabilized properties traded at significant discounts to prior-cycle valuations.
- Summit Properties acquired the 2,692-unit Brooklyn portion of Pinnacle Group’s bankrupt rent-stabilized portfolio for $212.9 million. At approximately $79,000/ unit, the transaction established a significant benchmark for deeply regulated Brooklyn multifamily assets
Development Highlights
- Development surged 60% year-over-year to $1 billion across 93 transactions, buoyed by programs such as the 485-x tax abatement, City of Yes and targeted rezonings.
- Standard development sites averaged $265/BSF, down from $288/BSF a year earlier. MIH/UAP sites averaged $243/BSF, indicating that the 60% dollar volume increase was driven by a greater number of larger transactions rather than pricing appreciation.
- The sector’s largest transaction was the $121.4 million sale of a 983,232 BSF development site at 47 Hall Street in Clinton Hill, which will combine new construction with the adaptive reuse of eight historic structures to produce up to 620 rental apartments and approximately 47,600 SF of ground floor retail.
Retail Highlights
- Retail dollar volume rose 44% year-over-year to $292.9 million across 38 transactions, as activity shifted toward larger, higher-quality assets.
- Pricing reflected the market’s flight to quality, with Brooklyn retail achieving a record average price of roughly $863/SF, well above the previous year’s $686/SF.
- Exemplifying this trend was Empire State Realty Trust’s acquisition of 21,409 SF retail condominium at 127 Kent Avenue in Williamsburg for $46 million, continuing the REITs strategic expansion into prime NYC street retail as it reallocates capital from office assets.
GREA’s Brooklyn 2026 Mid-Year Commercial Real Estate Trends report is available here.