BROOKLYN, N.Y., May 2, 2008 — With job growth easing and the possibility of job losses rising, the wheels of change are turning more slowly in Brooklyn thus far in 2008, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Vacancy in the borough remains extremely tight, averaging in the low-3 percent range in the market’s few large, market-rate properties and even lower in rent-controlled units.
“Investor interest in rental properties remains high due to persistent demand for affordable housing,” says J.D. Parker, regional manager of the Brooklyn office of Marcus & Millichap.
Following are some of the most significant aspects of the Brooklyn Apartment Research Report:
Employers are projected to add 1,000 jobs in Brooklyn this year, a 0.2 percent increase.
Vacancy is forecast to end the year at 3.6 percent.
Counting all multi-family projects, approximately 3,000 units are scheduled for delivery this year, with more than 1,300 units slated to come online in Brooklyn Heights, DUMBO, Boerum Hill, Downtown and Williamsburg.
Asking rents are forecast to rise 4.5 percent to $1,436 per month.
Effective rents are on track to gain 4.4 percent to $1,407 per month.
For a copy of the complete Brooklyn Apartment Research Report, as well as reports on other markets nationwide, visit our website at www.MarcusMillichap.com.
With more than 1,300 investment professionals in offices nationwide, Encino, Calif.-based Marcus & Millichap Real Estate Investment Services is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments. In 2007, the firm closed $20.7 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the industry’s most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally.