Bisnow’s Brooklyn State of the Market: SUPPLY GLUT, LUXURY BOOM ARE JEOPARDIZING BROOKLYN’S VALUE PLAY December 14, 2016

Bisnow | December 5, 2016

By Benjamin Mazzara

With rapid development outpacing demand and overeager developers demanding high rents, Brooklyn has lost sight of the value proposition that made it so attractive in the first place.

Supply Glut, Luxury Boom Are Jeopardizing Brooklyn's Value Play

The supply flood and Millennial masses heading to cheaper fringe areas are causing rents to noticeably dip and condo/townhouse sales to soften. Leslie J. Garfield & Co real estate advisor Ravi Kantha (third from right) said this pushback should’ve been expected as Brooklyn townhouses are being listed for the same prices as Manhattan luxury condos.  “If the value’s no longer there, only the people who really want to live in Brooklyn will pay those prices,” he told the crowd at Bisnow’s Brooklyn’s State of the Market on Friday. He said companies, including his own, need to readjust their expectations. Toll Brothers City Living president David von Spreckelsen (far right) said his firm’s already done so, focusing on a delivering condos worth $2M or less. A major complication is the L Train’s closing, which GFI Realty senior investment sales director Erik Yankelovich (second from right) said has placed a spotlight on how lacking the borough’s transportation system is.

 

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