B
rooklyn's investment sales market experienced a significant surge in 2024, with $7.8 billion worth of transactions recorded, according to TerraCRG's annual Brooklyn Market Report. This marks one of the strongest years since the Great Recession, with a 51% year-over-year increase in dollar volume and a 12% jump in transaction numbers.

    The report highlights Downtown Brooklyn as one of three neighborhoods that exceeded $1 billion in dollar volume, along with East New York and East Williamsburg. The average transaction size by dollar amount reached a record high of $6.5 million.

    TerraCRG's CEO Dan Marks attributes the market's growth to several factors, including the 485x tax abatement, which helped crack open the residential development door. He also notes the impact of the Federal Reserve's interest rate cuts and New York City's passage of "City of Yes," both of which occurred in the second half of the year.

    Transaction volume increased by 22% from the first to the last quarter, while dollar volume surged by 209% over the same period. Notable deals included Camber Property Group's acquisition of Linden Plaza for $845 million and Silverstein Capital Partners' takeover of Brooklyn Tower at a value of $672 million.

    While Brooklyn still lags behind its pre-pandemic peak, Marks is optimistic about the market's future, predicting a "robust 2025 and perhaps beyond."