Commercial Real Estate: Why the Brooklyn market will remain strong

From boom to bust to recovery, the New York City real estate market has remained strong, and the Brooklyn market has proved especially healthy. While several Brooklyn neighborhoods, including Williamsburg, Fort Greene, Bedford-Stuyvesant and Bushwick, have demonstrated notable changes over the past several years, the story of Crown Heights is particularly illustrative of the capital investment flowing into the market. According to a study conducted by GFI Realty, which analyzed a select number of properties in Brooklyn, neighborhoods like Crown Heights are soaring. In 2007, as the market reached its peak, the average price per unit in Crown Heights was $112,000. After The Great Recession, the market recovered steadily, with price per units reaching an average of $175,000 by 2014, exceeding the average price per unit during the "height" of the market in 2007. Why do we believe that the Brooklyn market will remain strong? As property values in New York City continue to rise, many domestic and foreign investors are setting their sights on Brooklyn, and purchasing apartment buildings near transportation routes that provide convenient access to Manhattan. And as investors continue to seek out these opportunities, the average price per unit in neighborhoods like Crown Heights and Flatbush will continue to flourish. Consider this: During one of the most tumultuous economic time periods, Crown Heights has demonstrated a tremendous amount of growth and appreciation, making it an ideal area to represent the meteoric rise of certain neighborhoods in Brooklyn. As we look to the future, we expect that Brooklyn will continue to play a major role in driving the New York real estate market. Visit http://bit.ly/1HAZpv6 to view the full Brooklyn 2007-2014 CAP & GRM Trend Report Michael Weiser is the president of GFI Realty Services, Inc., an affiliate of GFI Capital Resources Group, Inc., New York, N.Y.