Brooklyn, NY Market Report H1 2026
Multifamily
Market Overview
- In the first half of 2026, Brooklyn multifamily saw $410M in total dollar volume across 105 transactions.
- Free market assets continue to trade at significantly higher metrics as compared to those subject to rent stabilization. The premium for fully free market product is $250/SF and capitalization rate reduction of 92 basis points, on average.
- Average pricing varied widely by submarket, largely attributable to prevalence of free market product in respective markets.
Dollar Volume by Region
Source: Matthews™ Research
Mixed-Use
Market Overview
- In the first half of 2026, Brooklyn mixed-use saw $856M in total dollar volume across 211 transactions.
- Mixed-use buildings with 5 or fewer units traded at a significant premium due to free market status. The delta between free market and rent regulated assets is less pronounced in the mixed-use product type, since the retail component is generally treated as fully free market and offers an element of ongoing upside.
- North Central Brooklyn led in transaction count with 47 sales, though cap rates in the region averaged 7%+, indicating continued buyer appetite in growth markets.
Dollar Volume by Region
Source: Matthews™ Research
Retail
Market Overview
- In the first half of 2026, Brooklyn retail saw $180M in total dollar volume across 40 transactions.
- Cap rates for retail product averaged around 6%, confirming renewed appetite for the sector, primarily for corporate backed tenants and covered land plays.
- North Brooklyn was the strongest performing submarket, with 12 transactions, several of which broke the $1,000/SF mark.
Dollar Volume by Region
Source: Matthews™ Research
Office/Specialty
Market Overview
- In the first half of 2026, Brooklyn office/specialty saw $280M in total dollar volume across 36 transactions.
- Greater Downtown Brooklyn drove the majority of dollar volume ($306.1M across 8 transactions), led by large single-asset trades including the $121.4M sale of 47 Hall Street.
- South and North-Central Brooklyn traded at the highest average pricing, at $562/SF and $517/SF, respectively.
Dollar Volume by Region
Source: Matthews™ Research
Development
Market Overview
- In the first half of 2026, Brooklyn development saw $560M in total dollar volume across 60 transactions.
- Strong transaction velocity and high price per buildable SF averages demonstrate a resurgence in development activity across the borough, as City of Yes and other incentives go into effect.
- Medium/large-scale projects with 99 or fewer units have received the strongest interest from developers, particularly in mature markets.
Dollar Volume by Region
Source: Matthews™ Research
Industrial
Market Overview
- $184 million in volume across 41 transactions over $1M, a 21% increase from the same period last year.
- First-time buyers accounted for nearly half of total dollar volume, institutional deals are largely absent, and properties between $10M and $20M continue to be the hardest to sell.
- Sales volume increased 21% from 1H25
- Average pricing held at $459 per square foot
- 83% of buyers were users
- 59% of user-buyers were purchasing for the first time
Dollar Volume by Region
Source: Matthews™ Research
