Manhattan Rents Decrease The Most Since 2011 As Concessions Deemed Not Enough

A new report by Bloomberg indicates that Manhattan median rents has been reduced 3.6% for the same time last year as the glut of inventory in Manhattan as well as more affordable units in neighboring boroughs have affected prices.  Median rents came in at $3,141 per unit according to Bloomberg and the decline is the biggest since October of 2011.  Concessions on newly signed leases increased to 49% of all signed for the period.  Concessions that many NYC property management companies and landlords have been using are free months of rent, free gym memberships, gift cards as well as landlord's picking up broker's fees.

The trend in residential units in Manhattan is beginning to catch up to the trend that has already been seen in the commercial sector.  Commercial landlords have increasingly within the last two years given increasing perks and have negotiated shorter lengths of leases in order to lure tenants.  Retail has been the most hit with rents being reduced by as much as 30%.

The vast amount of inventory seems to be the main factor in decreasing rents.  A report compiled by Citi Habitats shows that around 5,630 newly built apartments will be introduced to the market this year.  This is above the amount that entered in 2017 which was calculated to be 4,270 units.

Some also believe that neighboring boroughs and cities have affected Manhattan rents as well. Gary Malin, president of Citi Habitats says to Bloomberg “The dynamic has shifted,” with Brooklyn, Queens and the New Jersey waterfront becoming viable options to many renters.  Tenants are looking for value, and they’re open to suggestions.”

Although rents have decreased in Manhattan, it certainly not affected sales prices.  A new report by City Realty indicates that prices are still rising.  According to the report, the average sales price in Manhattan increased 15% to $2.3 million for December 2017.  Sales volume also increased roughly 8% from the month previous month as there was 884 transactions recorded in December.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

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