First-Time Buyers Keep Brooklyn’s Industrial Market Moving

Brooklyn’s industrial sales market picked up during the first half of 2026, with owner-users and first-time buyers accounting for much of the activity.

 

Sales volume reached $184 million, a 21% increase from the first half of 2025. The market recorded 41 transactions above $1 million, up from 35 during the same period last year. Average pricing held steady at $459 per square foot, while the average deal size increased slightly from $4.1 million to $4.5 million.

 

Sunset Park led Brooklyn with seven transactions, followed by Greenwood Heights with five. East Flatbush, East New York, Williamsburg, and Gowanus each recorded four sales.

First-Time Buyers Are Filling the Gap

Owner-users represented 83% of buyers during the first half of the year, and nearly 60% of those were purchasing an industrial property for the first time.

 

First-time buyers accounted for almost half of total dollar volume, compared with 34% in 2025. Their activity has helped keep the market moving at a time when institutional buyers remain largely on the sidelines.

 

These deals can take longer to complete. First-time buyers often need additional guidance through financing, environmental reviews, and contract negotiations. Sellers should be prepared for a longer marketing period and a transaction process that may require more patience.

 

Strong exposure also matters. Reaching a broad network of owner-users and cooperating with other brokers can help create competition and capture the premium that users are often willing to pay for the right property.

The Market Remains Focused on Smaller Deals

Despite the increase in activity, Brooklyn’s average industrial deal size remains relatively low. At $4.5 million, it is still well below the roughly $7 million average recorded between 2022 and 2024.

 

The change reflects the lack of larger institutional acquisitions and the market’s reliance on smaller owner-user transactions. Demand remains active for properties that fall within the financial reach of local businesses, but the buyer pool becomes much thinner as pricing moves above $10 million.

The $10 Million to $20 Million Range Is the Most Difficult

Industrial properties priced between $10 million and $20 million remain the hardest assets to sell.

 

These properties are often too expensive for most owner-users, particularly as financing costs and equity requirements remain elevated. At the same time, they are generally too small for institutional investors, and the pricing may not produce a strong enough yield to attract traditional investment buyers.

 

As a result, sellers in this range may need to allow more time, adjust pricing expectations, or target a smaller group of well-capitalized users with a specific operational need.

 

Brooklyn’s industrial market is active, but it is not moving evenly. Smaller properties continue to benefit from owner-user demand, while larger assets require a more targeted approach and greater flexibility from sellers.

 

The data referenced excludes transactions below $1 million and all self-storage sales.