Future looks bright for Brooklyn in 2014: Taking a step out of Manhattan's shadow

Even with a strong year's end for Brooklyn real estate - over $2 billion in sales volume was generated in 2013 alone - there's more to come in this ever-soaring market. Since the mid-2000s, most of Brooklyn has been rezoned by the department of city planning, a move that has fostered dynamic growth throughout the borough. Areas such as Park Slope, downtown Brooklyn, and Greenpoint/Williamsburg (one of the largest rezoning efforts in New York City) have brought a plethora of buyers eager to invest their capital in this latest real estate hot spot. One notable deal in downtown Brooklyn was the sale of 276 Livingston Street, a 500,000 s/f buildable development, trading for $70 million, which translates to $140 per s/f. Twenty minutes away in Clinton Hill, 882 Fulton St., a 52,100 s/f corner development, sold for $9.5 million, or $182 per s/f. The Brooklyn real estate boom continued with one of the largest transactions in 2013, the five-building portfolio sold by The Watchtower Organization, which included 117 Adams St., 175 Pearl St., 55 Prospect St., 81 Prospect St. and 77 Sand St. The package had a combined square footage of 1.2 million that sold for $375 million, $312 per s/f combined. As multifamily transactions for 2012 were down considerably, 2013 showed a modest increase of 9% in sales throughout the borough. A four story, 12-unit apartment building in Park Slope - 646 President St. - sold for $3.25 million. In Fort Greene, an eight-unit building at 54 Cumberland St. sold for $2.9 million. In Clinton Hill, 95 and 97 Waverly Ave., two five-story apartment buildings with 17 units, sold for $6.5 million. And a one story, 10,976 s/f commercial building at 150 Myrtle Ave. in downtown Brooklyn sold for $6.75 million. Retail transactions were equally impressive. The retail market enjoyed a 20% increase in sales from 2012, with a transaction increase of 4% in 2013. A 4,977 s/f retail condo in Gowanus at 500 Fourth Ave. sold for $1.74 million. The 25,000 s/f retail site at 7317 18th Ave. was snapped up for $12.75 million by the Salvation Army, bringing Bensonhurst into the commercial real estate frenzy. What were the results of this flurry of activity? Amidst the buying blitz, the new sectors became more clearly defined as developers flocked to Brooklyn seeking to revitalize the reorganized neighborhoods. Development transactions contributed to over 25% of the borough's transaction volume in 2013, a 10% increase from the previous year. Another positive impact was the flourishing job market, which has created a need for more housing in order to accommodate the growing number of residents converging on the borough. The strong infrastructure, comprehensive transit system and attractive housing prices have contributed to Brooklyn's population spike. The Brooklyn, Williamsburg and Manhattan bridges also provide direct access to Manhattan, allowing commuters to customize their travel options. The abundance of amenities doesn't end there. Brooklyn is also home to Long Island University, Brooklyn College and Brooklyn Law School, among other higher education institutions that attract the city's best and brightest. The borough also boasts top healthcare facilities like Methodist Hospital, Lutheran Medical Center and SUNY Downstate. Locals need not cross the bridge to receive excellent medical care. With all these attractive and convenient amenities, the exodus to Brooklyn from Manhattan is not just limited to residents. The construction of Barclays Center has brought tremendous exposure to the borough, challenging Madison Square Garden's long-standing title as the place for top entertainment in New York City. Additionally, the neighboring construction of City Point will bring a fresh retail corridor, reintroducing strong shopping coupled with residential towers and office space availability. Thus, manufacturers are also leaving Manhattan for Brooklyn to get more bang for their buck, as rents figure up to 50% less than those in Manhattan, and new companies are looking to put down roots in the borough. Pharmaceutical companies, tech startups, design firms and advertising agencies are all looking to make Brooklyn their new home. What does all of this mean for the diverse borough's future? As the fourth largest city in the United States, Brooklyn's renaissance has brought a major shift - ideologically and geographically - to New York City's landscape. Brooklyn is on its way to becoming a metropolis in its own right, taking steps outside of Manhattan's shadow. Dennis Gelin is a senior associate at Azad Property Group, New York, N.Y.