Brooklyn Multifamily Report – Summer 2019
- Jul 10, 2019
Brooklyn’s multifamily market continued to perform well going into 2019. Although deliveries ramped up last year, the borough’s occupancy rate in stabilized properties, at 98.7 percent as of March, remained one of the highest in the country.
New York City’s education and health services sector led employment growth in the 12 months ending in March, accounting for more than half of the 103,300 new jobs. Professional and business services followed, with the addition of 20,800 positions. Tech giants are quickly filling up office space left empty by financial company relocations. In downtown Brooklyn, Tishman Speyer is working on a 10-story office property at 422 Fulton St., very close to Extell Development’s upcoming 57-story condo tower, the borough’s tallest high-rise. With buildings producing nearly 70 percent of the city’s gas emissions, officials introduced new legislation that sets emissions caps. The state is also considering introducing a green component to the Brooklyn-Queens Expressway revamp project.
Developers added 5,010 units in Brooklyn last year and deliveries reached a new cycle high, but absorption kept up pace. With supply and demand in relative balance and new rent regulations on the horizon, we expect the average overall New York City rent to advance 0.7 percent in 2019.