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Price per buildable square foot for Brooklyn dev. sites surges

Average jumps nearly 20 percent to $154, while dollar volume hits $6.7B: report

Brooklyn commercial property sales dollar volume by property type (Credit: TerraCRG)
Brooklyn commercial property sales dollar volume by property type (Credit: TerraCRG)

The average price per buildable square foot for Brooklyn development sites zoned for residential use jumped by 19 percent in 2014, according to a new report from TerraCRG.

Year-over-year, the price grew to $154 per buildable square foot from $129 per buildable square foot. North Brooklyn saw the borough’s highest price for buildable square feet with a $241 average.

Crow Hill Development, for one, sold a development site at 608 Franklin Avenue in Crown Heights for $231 per buildable square foot, or $17.5 million, in August, as The Real Deal reported. The site offered 75,000 buildable square feet.

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Some deals in North Brooklyn were as high as $539 per buildable square foot. That region also had the highest total buildable square footage sold – with 2.4 million buildable square feet. The amount of space comprises 27 percent of total buildable Brooklyn space.

Meanwhile, dollar volume for Brooklyn commercial buildings climbed to $6.7 billion in 2014 from $5 billion. There was a total of 1,964 deals in 2014. The average deal was for $3.4 million, up from $2.6 million the previous year, according to TerraCRG.

Residential rental properties dominated the dollar volume. Deals in that category included more than $2.5 billion. The average price per apartment in multi-family buildings rose by 29 percent – to $210,832 from $163,279.

Brooklyn had a total dollar volume of $940 million. North Brooklyn and Downtown Brooklyn accounted for a total of 65 percent of that volume, the report said.

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