Below you’ll find an overview of all industrial transactions in 2025 exceeding $1M in Brooklyn and some noteworthy insights:

▪ Total dollar volume for the Brooklyn industrial market was approximately $235M. This represents a 76% decrease from 2024 and a 56% decrease from 2023.

▪ 66 industrial transactions exceeding $1M were recorded in Brooklyn, down from 101 in 2024.

▪ Warehouses traded at an average of $419 per SF.

▪ The average deal size was approximately $3.5M, down sharply from $9.5M in 2024 and $8.5M in 2023.

▪ 76% of transactions were bought by users, with 36% of these buyers being first-time buyers!

Top neighborhoods by transaction volume:

Greenpoint (9)

Williamsburg (6)

East New York (6)

Borough Park (6)

Sunset Park (6)

Three Trends That  Shaped the 2025 Industrial Market

1. Dollar Volume & Average Deal Size Tell Different Stories

Dollar volume is often used as a proxy for institutional confidence, but in a low-velocity market like Brooklyn industrial, it can be misleading. One or two large trades can heavily skew the data.

For example, in Q4 of last year, just three transactions accounted for 54% of total annual dollar volume.

That’s why the average deal size is a better indicator of the health of this sector. In 2025, average deal size declined meaningfully versus prior years, which aligns with what we are seeing on the ground. Deals over $5M have become increasingly difficult to transact. The user buyer pool at this level has become thin, and the spread between investors and sellers widened in 2025 with taxes continuing to increase and vacancy rates moving in the wrong direction.

2. North Brooklyn Remains Strong

Williamsburg and Greenpoint accounted for 33% of the total dollar volume and 24% of all transaction activity in Brooklyn.

These neighborhoods continue to lead because of their versatility:

• Strong appeal to creative and light industrial users
• Access to major throughfares for manufacturing and distribution
• Ability to support destination retail rents (pickleball, gallery, event space, etc.), often 10-15% higher than traditional industrial leases

North Brooklyn remains the most liquid and resilient submarket.

3. Vacancy Increases + Slowing Rent Growth

North, Central, and West Brooklyn (according to CoStar)

• Rent growth: -0.4%, a sharp slowdown from +9% YOY rent growth in mid 2022
• Vacancy rate: 4.7%, and expected to rise over the next 12 months

South, East, and Central Brooklyn (according to CoStar)

• Rent growth: -.0.5%, down materially from +10% YOY in mid 2022
• Vacancy rate: 9.6% and expected to rise over the next 12 months

2025 marked a clear shift toward a more tenant-friendly market, and we expect that dynamic to continue in 2026. This shift is already having ripple effects across the market:

• Investors are underwriting longer lease-up timelines and being more conservative in projecting market rents
• Users, with more availability and leverage, have less urgency to buy and are increasingly choosing to lease instead
• Elevated vacancy, rising expenses, and flat rent growth have become, and will continue to be, a catalyst for owners to consider selling.

All of these trends are expected to intensify in 2026, particularly in submarkets with higher vacancy.