Rents Falling in Manhattan a Lot, Brooklyn Not So Much
Residential rents in Manhattan fell pretty much across the board last year, and incentives like a month’s free rent are becoming increasingly common. The head of Halstead’s rental division estimates that prices are down between 10 and 15 percent from the 2007 peak though the article’s author digs up “anecdotal evidence” that the number is…
Residential rents in Manhattan fell pretty much across the board last year, and incentives like a month’s free rent are becoming increasingly common. The head of Halstead’s rental division estimates that prices are down between 10 and 15 percent from the 2007 peak though the article’s author digs up “anecdotal evidence” that the number is more like 20 percent. One by-product of the weaker market is that many more landlords are now willing to pay a broker’s fee to land a tenant. In the past, slowing sales has often meant a tighter rental market, but that’s not always the case: People assume when sale slows down, rental will pick up, but that depends on what the source of this is, said Gregory J. Heym, the chief economist at Terra Holdings, which owns Halstead and Brown Harris Stevens. When you’re losing jobs, the rental market is also going to suffer. Echoing what we’ve been hearing recently, the rental market in Brooklyn has not softened as much. We’re not renting as fast as we would have expected, said Patrick McGrath, whose firm recently bought and started renting out The Standish in Brooklyn Heights. We’ve had to provide concessions — a free month rent, we pay the broker fee. But rents are around where we expected them to be. We’re in the ballpark.
A Month Free? Rents Are Falling Fast [NY Times]
Photo by turkeychik
“Especially if you consider that average rents in PS are more expensive than Hell’s Kitchen and the Lower East Side.”
And they’ll stay thet way
PS is a much nicer place to live than Hell’s Kitchen and the LES unless you want lots of noise and hundreds of people out partying on your blocks.
11217,
Those are all just asking rents. Folks can ask whatever they want.
All that matters is the actual lease rent which is often MUCH lower in this market as the NY TImes article makes clear.
Did your friend make any hard offers for these apartments? That’s the real proof in the pudding, dude.
BTW, my friend is interested in the 2700 a month South Slope 2 bedroom and is hoping to talk the landlord down to 2500.
So yes, thinks are falling, but I don’t see rock bottom prices by any means.
Especially if you consider that average rents in PS are more expensive than Hell’s Kitchen and the Lower East Side.
As I said…I welcome some movement downwards, if for no other reason than so that more of my friends can afford it. Selfish, yes!
IronBalls…I was stating a fact. I just resigned my tenants at $1,200. I wouldn’t raise it because they’re good tenants and nice people. How dense can you be???
“What, are you kidding me? Any reasonably intelligent renter who’s been AWAKE for the last 11 months doesn’t need the NY Times to tell him he/she’s got more negotiating room that in the past! The “secret” was out before it hit the real estate section fo the NY Times! Come on!”
Yep ENY But now everything is in Blast mode! Go back and read my perdition’s 2009 is going to be real bad.
“If rents don’t come down in Brooklyn, I’ll move back to Manhattan and get one of those no fee/1 month free places for a year and see where the market stands in 2010.”
DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!! DING!!!
You better read this paragraph very carefully! The deal is when this spring comes people are going to move back to Manhattan! You can get a 2 Bedroom in Tribecca for 3100.00! That knock anything in Brooklyn out of the box and Harlem is going to pick off some people from “Brownstone Brooklyn”
I don’t feel sorry for the retards who bought property here and I hope you get your heads knocked off!
“But remember that even with the collapse of investment banking, NYC is still the #1 economic powerhouse in this country. I don’t see that changing anytime soon.”
Oh and Publishing is going to get murdered!
PENSION TENSION
GRAY LADY’S $625M DEFICIT ADDS TO PUBLISHER’S WOES
http://www.nypost.com/seven/02022009/business/pension_tension_153124.htm
Just when it started to look as if The New York Times Co. had found a way to dig itself out from under its massive debt load, the beleaguered newspaper company may be on the verge of getting knocked down again.
The cash-strapped publisher last week reported that its pension plan was facing a $625 million shortfall at the end of 2008, compared with a deficit of $48 million a year earlier.
The trend is your friend.. Buh bye…
The What
Someday this war is gonna end…
99luftballons,
It’s one thing making a deal like that with an existing tenant since their is a substantial cost involved in moving. I’ve been making similar deals myself with tenants.
The question is how long that apartment would have sat on the market vacant if the tenant had moved out before you agreed to lower the rent enough to get it rented.
There’s a big difference between what you might be able to negotiate with an existing in place tenant and someone incurring moving expenses who’s currently looking at what’s available on the open market.
I don’t think so either, as I’m helping two friends move to Park Slope right now and I’ve been not only scouring the internet and real estate listings constantly, but yesterday met with 3 different brokers in PS and saw 4 apartments yesterday afternoon:
1. We looked at a 2 bedroom in South Slope which was 2700.
2. We looked at a 2 bedroom in Center Slope which was 2500. Absolute Dump!
3. We looked at a 1 bedroom plus “office” in the Center Slope and it was 2200.
4. We looked at a 2 bedroom on 4th Avenue which was 2400. Not great location, nice apartment though. One of the bedrooms would fit a Full bed, nightstand and dresser and that’s about it.
I also went to take a look at a studio for a another friend who might be moving from Manhattan on Saturday and it was on a great North Slope block and is renting for $1800. She thinks it’s a great deal, as she’s currently paying 2800 for a studio in the West Village.
This is just some “from the field” info…
Nope, Dave.
That game’s over. You have no idea how bad things have gotten.
Well, IronBalls, I don’t think so since I’m still getting $1,200 and could probably get $1,350 or so for my one-bedroom in Bed Stuy.