Buoyant Brooklyn apartment market garners investor attention.

Even with its large renter population and steady apartment fundamentals, many other aspects of the Brooklyn market seem assured of receiving considerable attention in the months and years ahead, according to a first-quarter Apartment Research Report by Marcus & Millichap Real Estate Investment Services.

With a population of 2.5 million, Brooklyn continues to be perhaps the largest apartment market that very few people have heard about.

"Investors continue to find properties in the borough that meet a variety of investment objectives, as transaction velocity has increased for two successive years," states J.D. Parker, regional manager of Marcus & Millichap's Brooklyn office.

"Also, pricing has not surged ahead of fundamentals, and cap rates remain attractive compared to other markets."

Among the most significant aspects of the Brooklyn Apartment Research Report were the fact that employers will add 7,000 jobs this year, a 1.5% gain and an increase from 5,200 new positions created in 2006.

Builders are expected to complete 400 market rate rental units this year, compared with only 50 units in 2006, increasing market-rate rental stock by approximately 2%.

A slight increase in completions, and competition from for-sale units being used as rentals and regulated rental units, will support a 10 basis point uptick in the vacancy rate to 2.6% this year.

The report also found that low vacancy and persistent demand will support a healthy 6.8% increase in both asking and effective rents this year to $1,346 per month and $1,332 per month, respectively.

Transaction velocity will remain steady, as Brooklyn is too large a market to be ignored by investors. The borough's ongoing resurgence will only encourage more investors in the near term.