Real Estate Market Slows in Gowanus

Real estate in Brooklyn hit historically high levels in 2022, according to brokerage TerraCRG. According to their recent report, 2023 will not live up to the numbers from 2022. Total dollar volume of investment sales in Brooklyn by September 2023’s end, as compared to that in 2022 was down 50%.

So far this year there have been 834 transactions in Brooklyn, which is a 31% decline year-over-year.

What has led to all of these changes and the significant slowing of the real estate boom in the area? According to Dan Marks of TerraCRG factors include newer rent-stabilization laws, rezoning that has taken place and the end of the industrial boom after COVID-19.

The numbers from last year are slightly skewed, as well, with the $330 million sale of an Amazon logistics center in the area. Rezoning in both East New York and Gowanus, Brooklyn has caused the city’s industrial footprint to actually shrink, which also changes the numbers.

Offering a positive message, however, Marks says, “I think when we look back a few years from now, the up and down is going to look more smooth than what we’re feeling quarter to quarter now.”