Brooklyn’s Industrial Property Market Reigns with 84% of NYC Sales in Two Years

Kings County, notably Brooklyn, has dominated New York City's industrial property market, accounting for nearly 84% of total sales volume over the past two years. This trend underscores Brooklyn's significant role in the city's industrial real estate sector.

Top Transactions Highlight Brooklyn's Influence

Five of the top 10 industrial property sales in New York City from the past two years occurred in Brooklyn. Among these transactions were two major deals that collectively represented 68% of the citywide sales volume. This concentration highlights Brooklyn's prominence in high-value industrial real estate transactions.

Brooklyn Leads in Total Sales Volume

Analysis of property records reveals that Brooklyn led in total sales volume, surpassing $712 million across 32 transactions during the specified period. This substantial figure underscores Brooklyn's dominance compared to other boroughs in industrial property investment.

Queens, Bronx, and Staten Island Follow

Queens ranked second in sales volume, with nearly $85 million from 19 transactions, followed by the Bronx with $52 million across nine sales. Staten Island had a single industrial sale totaling $1.6 million. Manhattan, however, did not record any industrial transactions meeting the specified value threshold during the two-year period.

Notable Transactions Drive Brooklyn's Success

Dov Hertz's DH Property Holdings emerged as a key player with two landmark industrial sales in Brooklyn during the analyzed period. The largest sale was the multi-story Amazon logistics facility at 640 Columbia Street in Red Hook, which was acquired by CBRE Investment Management for $332 million in July 2022, marking the city's largest industrial transaction in recent years.

Hertz followed this with another significant sale at 75 20th Street on the Greenwood waterfront in late 2023. FedEx purchased the site for $248 million, intending to establish a large distribution center, reflecting Brooklyn's appeal for major industrial developments.

Other Noteworthy Transactions

Several other notable transactions contributed to Brooklyn's industrial real estate landscape. For instance, a warehouse at 42-11 Ninth Street in Long Island City, Queens, was sold to Terreno Realty by Titan Contracting for $23 million, securing third place in the top sales ranking.

Additionally, a manufacturing building at 130 Third Street along Brooklyn's Gowanus Canal sold for $19.5 million to David Levitan, slated for conversion into a 403-bed migrant shelter, highlighting diverse repurposing trends in Brooklyn's industrial properties.

Future Developments in Long Island City

Two industrial buildings at 29-16 and 29-24 40th Avenue in Long Island City were sold for $19 million to SB Development. These buildings, spanning nearly 29,000 square feet, are set for demolition to pave the way for an 11-story mixed-use development with residential units, reflecting ongoing transformations in the neighborhood's industrial landscape.