Uncertainty Cooled Brooklyn Investment Sales In 2025

Brooklyn’s investment sales market bent in 2025, but it didn’t break.

The borough logged $6.6 billion in commercial property trades across 1,191 deals, according to TerraCRG’s 2025 Brooklyn Market Report. That marked a 16 percent drop in dollar volume from 2024, even as the transaction count was basically flat.

“The prevailing theme is definitely uncertainty,” TerraCRG Dan Marks said during a conference call. “There are many open questions that are likely to be resolved … in 2026, and those outcomes are going to have a meaningful impact and implications for both owners who are deciding to sell and buyers regarding deploying capital.”

The year unfolded amid a swirl of questions about interest rate cuts, mayoral and City Council elections and the passage of a major rezoning of Atlantic Avenue. But momentum built toward the end of the year as the picture became clearer. The fourth quarter closed with nearly $1.8 billion in volume across 277 transactions, bolstered by three trades over $100 million, per the report.

Residential development fared best, posting a 24 percent increase in dollar volume year-over-year, or $1.4 billion across 58 transactions. The largest deal was Tavros Capital and Charney Companies’ purchase of 175 Third Street from Aby Rosen’s RFR Holding for $164 million.

Mixed-use posted the highest overall dollar volume at $1.8 billion across 445 transactions, despite a modest year-over-year decline. The biggest deal was Carlyle Group and Jay Greenberg’s Z+G Property Group’s purchase of the 13-story apartment building at 130 Second Street in Gowanus from a joint venture of Joyland Management, Meral Property Group and the Loketch Group.

Multi-family told a more nuanced story. Transaction count rose, even as dollar volume slid 23 percent, signaling strong demand at lower prices. The year’s largest multifamily deal came in Fort Greene, where Fetner Properties, MCB Real Estate and Farallon Capital Management paid $210.5 million to Rabsky Group for the 463-unit building at 240 Willoughby Street.

Other sectors struggled to regain footing. Industrial sales plunged 67 percent by dollar volume, reflecting a lack of available inventory. Retail volume fell 20 percent, though trophy assets in Williamsburg continued to command record numbers from institutional buyers.

Market headwinds are unlikely to dissipate overnight, as political shifts continue to shape dealmaking.

Marks said, “2026 is going to be defined a lot by how the new administration is behaving and what they’re able to get passed.”