What oversupply? Panelists say Brooklyn’s real estate market is starting to reset, reported the Real Deal 11/1/18:
That said, there are still lots of incentives to fill currently available units, so the situation is fluid.
Susi Yu of L&L MAG, formerly of Forest City New York, said. “I actually don’t think it’s an oversupply issue,” she said. “I think it’s about a lot of product being delivered during the same very short time period, and people have now options of actually negotiating and leveraging.”
Then again, Kelly gave an example that seems rather rarefied: empty nesters selling brownstones in Park Slope, then buying a condo with only part of the proceeds. That has been happening, including at 550 Vanderbilt in Atlantic Yards/Pacific Park, but there can't be too many of those examples.
Conventional wisdom may say that Brooklyn is dealing with an oversupply of rental properties. But according to panelists at a recent Bisnow event, the reality is much more complex.So, if at least two Pacific Park towers (B4, B15) should start in 2019, while two others (B12, B13) may start in 2019 or 2020, they may be finally in better position to attract residents.
Concerns over a glut may stem from a roughly two-year stretch when the borough saw between 2,400 and 3,000 rental units come online, said Sean Kelly, senior director of investment sales at Ariel Property Advisors. He pointed to TF Cornerstone’s 33 Bond Street project as one that was still filling up, but said at this point projects like that are the exception rather than the rule, particularly in Downtown Brooklyn.
“There’s not a lot in the pipeline for rental supply after that,” he said during a panel at Bisnow’s 2018 State of the Market event for Brooklyn on Thursday. “The next we have is Pacific Park. Those are the next big projects…You don’t have a deep pipeline of rentals in Downtown Brooklyn.”
That said, there are still lots of incentives to fill currently available units, so the situation is fluid.
Susi Yu of L&L MAG, formerly of Forest City New York, said. “I actually don’t think it’s an oversupply issue,” she said. “I think it’s about a lot of product being delivered during the same very short time period, and people have now options of actually negotiating and leveraging.”
Then again, Kelly gave an example that seems rather rarefied: empty nesters selling brownstones in Park Slope, then buying a condo with only part of the proceeds. That has been happening, including at 550 Vanderbilt in Atlantic Yards/Pacific Park, but there can't be too many of those examples.
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