H125 Brooklyn Industrial Market Report

Market Overview

Below is an overview of the Brooklyn industrial market in 1H25, along with a few key insights. This data excludes transactions under $1M and all self-storage deals.

 

• Total Dollar Volume: $146M —a 60% decrease from H124 and a 12% decrease from H122.
• Transactions: 35 deals over $1M, down from 50 in H124 and 41 in H123.
• Average Price per SF: Warehouses traded at $455 per SF, in line with the same periods of 24 and 23.
• Average Deal Size: $4.1M, down from $7.1M in H124.
• Buyer Trends: 80% of transactions were user-buyers, with 50% of these being first-time buyers!
• Top Neighborhoods by Transaction Volume: Borough Park (5), Sunset Park (3), Easy NY (3), Greenpoint (3).

 

Three Takeaways

1. Where Are The Deals?

Dollar and transaction volume are both in the gutter – lowest we’ve seen in four years. What’s causing it? Hard to say.

Tariffs? I don’t think so, most of the deals went under contract 4-6 months ago before tariffs were implemented. Economy? Although there was a stock market dip earlier this year, it was not significant enough to freeze activity like this.

The real issue seems to be a lack of urgency. Buyers and sellers aren’t citing tariffs or the economy—they just don’t feel pressure to act.

That said, the active buyers are playing it smart: moving slow, staying picky, but willing to pay a premium when a property checks all the boxes.

 

2. Smaller Deals, Bigger Premiums

$4.1M is the lowest average deal size we’ve seen in four years. From 2022 to 2024, the average was closer to $7M.

The trend isn’t new, it’s just more obvious now. With fewer listings on the market, user buyers are stepping up and paying big premiums for small, clean warehouses.

 

3. Hardest Deal to Sell: $10M-$20M

These “in-between” assets are stuck. They’re too big for most users—the pool of buyers with the capital and need for a property this size has shrunk since last year. At the same time, they’re too small for institutions, and the pricing rarely works on a yield basis. Sellers are still hoping a user swoops in to save the day, but in this market, that buyer is hard to find.