TerraCRG releases 3Q 2026 Brooklyn Market Report: Investment sales reach $5.88 billion year-to-date, up 21%

Brooklyn, NY TerraCRG released its 3Q 2026 Brooklyn Market Report. Through the first three quarters of 2026, TerraCRG verified 1,036 commercial investment sales in Brooklyn totaling $5.88 billion. That is a 21% increase in dollar volume and a 13% increase in transactions over the same period of 2025 (914 transactions, $4.84 billion).

At its current pace, Brooklyn is on track to close roughly 1,381 transactions and $7.8 billion in 2026, well above the borough’s 10-year average of approximately 1,177 transactions and $6.7 billion. The average deal size rose to $5.67 million, up from $5.3 million in the first three quarters of 2025.

Activity steadied in the third quarter after an exceptionally strong first quarter. Q3 2026 closed $1.72 billion across 316 transactions, up 12% in dollar volume from Q2 2026 ($1.54 billion, 317 transactions). Q3 dollar volume was 12% below Q3 2025’s $1.96 billion, while the number of transactions held flat.

Development and industrial properties led year-to-date growth. Asset class highlights for 2026 year-to-date compared with the same period of 2025:

• Development: $1.37 billion across 154 transactions, up 53% in dollar volume, led by 47 Hall St. ($121.4 million).

• Industrial: $807 million across 69 transactions, up 244% in dollar volume, led by 72 Caton Pl. ($145.5 million).

• Office: $356 million across 35 transactions, up 37% in dollar volume and 35% in deal count, led by 101 Pennsylvania Ave. ($89.9 million).

• Retail: $495 million across 95 transactions, up 31% in dollar volume and 28% in deal count.

• Multifamily: $1.21 billion across 277 transactions. Deal count rose 14% while dollar volume declined 15%; 118 Hope St. ($122.5 million) is the year’s largest multifamily sale.

• Mixed-use: $1.2 billion across 383 transactions, the most of any asset class. Deal count rose 14% while dollar volume dipped 4%.

The year’s largest transaction was the $161.5 million sale of 4915 10^th Ave. in Borough Park. The 10 largest trades of 2026 totaled $1.09 billion. Four of them closed in the third quarter: 118 Hope St. in Williamsburg ($122.5 million), 409 Eastern Pkwy. in Crown Heights ($109 million), 101 Pennsylvania Ave. in East New York ($89.9 million) and 485 Fulton St. in Downtown Brooklyn ($83.5 million).

Greater Downtown Brooklyn led all regions with $1.51 billion in year-to-date volume. By neighborhood, Williamsburg led the borough with $743 million across 46 deals and was again the top neighborhood in Q3, with $223 million. Crown Heights ($502 million) and Borough Park ($400 million) followed, while East Flatbush recorded the most transactions, with 71 deals.

“What we’re seeing across Brooklyn reinforces our confidence in the depth and strength of this market,” said Dan Marks, CEO of TerraCRG. “Year-to-date dollar volume is up 21%, and following a strong first quarter, activity in the second and third quarters returned to historical averages. Development sites and industrial properties have attracted the most capital this year, while multifamily transaction counts have increased even as dollar volume trails last year. With the borough on pace to finish well above its 10-year average, we expect a busy close to 2026.”

TerraCRG has been tracking all commercial real estate transactions in Brooklyn for more than 15 years. 

Methodology: The report analyzes Brooklyn investment sales recorded from January through September 2026 across multifamily, mixed-use, retail, industrial, office, development and special use properties. It includes only commercially zoned, investment-grade properties over $500,000. Data is sourced from NYC.gov and PropertyShark and verified by the TerraCRG team.