The construction of new Brooklyn residential properties had been greatly affected by the last recession. As a result, we are seeing much more development of rental units as opposed to condominium units. A slow economy and low consumer confidence along with the banks tight lending practices resulted in some development projects that were originally planned as condos to be switched to rentals. For example, one of the development opportunities that we at Accord Real Estate Group have in our inventory was planned as a high end condominium project.However now we are marketing this development opportunity as a multi-unit rental project. It economically makes more sense for the market at this point in time.
Amongst the thousands of residential units coming onto the market in Brooklyn in the next few years, a large percentage of them will be rentals. For example, 88 Willoughby Street in Downtown Brooklyn, an 861 rental unit apartment tower, Schermerhorn Street, a 720 unit rental and in Williamsburg a 40 story, 510 unit rental.
Brooklyn N.Y. offers many development opportunities, while land prices are approximately 65% cheaper than in Manhattan, the rents collected in Brooklyn are still high.
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