Friday, May 11, 2018

Rents Continue To Decrease Throughout The City With Queens Leading The Way After Concessions

According to a report authored by appraiser Samuel Miller, Inc. and Douglas Elliman rents continue to decrease all throughout New York City seeing the most significant decrease in Queens with an 11.7% decrease.  The decrease in rent helped leasing activity in Northwest Queens with lease-signings increasing 11% during the period.  The report which can be read in its entirety here shows that concessions are increasing in Manhattan, Brooklyn and Queens.

The report indicates that concessions in new rental transactions in Brooklyn increased from 14.7% to 51% in April.  Rent decreased in Brooklyn 2.9% to $2,686 per month. It is the 11th decrease in the last 12 months in Brooklyn.  Meanwhile in Northwest Queens concessions were up to 65.1% of all new deals.  This is up from 45.4% from the previous month year over year.  The median rent in northwest Queens was $2,646.00 per month.  The decrease is the 8th out of the last 9 months.  Northwest Queens is comprised of Long Island City, Woodside, Astoria and Sunnyside.

 Manhattan saw a slight change as well.  Concessions increased from 28.6% to 44.3% year over year.  It was the third highest recorded number since 2010.  Rents decreased altogether 2.2% to $3,236 per month.

Jonathan Miller, CEO of the appraisal firm Samuel Miller addressed the concessions hitting many of the units in the city recently.  He was quoted in TheRealDeal stating the following indicating that concessions would not be going away: “With the supply continuing to enter all these markets, it’s seemingly every month or every few months, there’s a new record set for the market share of concessions that are being offered,” he said.“With the influx of new developments continuing unabated, I think this market characteristic is going to be sticking around for a while.”

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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