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
What,
You’re preaching to the choir. Things could certainly get so bad that nice one bedroom apartments rent for $1000/mo in Park Slope.
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.
Where the hell else will real estate investors go? That’s right, there are ZERO better alternatives. Enough local investors still have enough cash and credit to keep things from truly going to hell.
You’ve been preaching economic doom for years and I have never disagreed with you in that regard. I’m on board completely with all your bursting bubble predictions.
And the fact that the federal government thinks it can borrow and spend our way out this recession is lunacy because every halfwit knows the money will be wasted and only lead to massive inflation — a reason why it’s not a bad time currently to buy real estate. There’s no better hedge against inflation.
“I wonder exactly the same thing. As a landlord, I’ll admit that I’m nervous. Someone at the NY Times has it out for us landlords.”
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!
Blah, blah,blah, blah, blah,blah, blah, blah,blah,blah, blah, blah, blah,blah.Blah, blah,blah, blah, blah,blah, blah, blah,blah,blah Blah, blah,blah, blah, blah,blah, blah, blah,blah,blah, blah, blah, blah,blah.Blah, blah,blah, blah, blah,blah, blah, blah,blah,blah
See retards the trend is your friend..
Buh bye retards! Nice knowing ya…
The What (Obama will save us)
Someday this war is gonna end…
“But at the end of the day, if you’re location is ideal, and your apartments are in excellent shape, flexible landlords still should be able to get decent rents. In reality the local NYC economy is bad, but not yet horrible. I’ve got 100% occupancy right now, but I’ve been very flexible in order to keep it that high.”
I have some bad news: You will not “Make it” in fact most of the retards will be moving out soon to jack up somewhere else!
Fringe neighborhoods like Clinton Hill, where our buddy Brownstoner resides, are going to see huge rent/price drops, unfortunately. Rents in Park Slope, as I mentioned in my previous post, are down considerably, but if your building is near the Park, subways, and restaurants — in other words on a “prime block” you’ll be ok. At least you’ll be able to find a credit worthy tenant.
Park Slope is going to get hammed because plenty of “White Collar” jobs are going to be killed! I’m willing to bet very soon you can rent a 1 bedroom in PS for 1000.00 and everywhere else is going to get blasted!
Macy’s Slashes 7,000 Jobs, Seeks to Buy Back Bonds (Update2)
http://www.bloomberg.com/apps/news?pid=20601087&sid=alFaIp3xXrCI&refer=home
Feb. 2 (Bloomberg) — Macy’s Inc., the second-largest U.S. department-store company, said it is cutting 7,000 jobs, or 3.9 percent of its workforce, and plans to buy back as much as $950 million in bonds due this year.
The retailer also cut its quarterly dividend to 5 cents a share from 13.25 cents, it said in a statement today. The moves will save $250 million this year and $400 million annually starting in 2010.
“The steps Macy’s has taken today are a recognition by the company of how bad things are for the economy and for Macy’s,†Pete Hastings, a fixed-income analyst with Morgan Keegan Inc. in Memphis, said in a telephone interview.
See retards the trend is your friend..
Buh bye retards! Nice knowing ya…
The What (Obama will save us)
Someday this war is gonna end…
The article says a two-bedrooom in Cobble Hill rented for $1900. I rented a two-bedroom in Carroll Gardens for $1900 from 2001 to 2004. Can someone familiar with the area please tell me: Have rents gone up since 2001 or have they stayed flat?
(“Two bedroom” is actually a small floor-through in a brownstone, not a real two-bedroom apt.)
Thanks.
There’s always lots of rental inventory on CL. At least until you realize it’s the same brokers posting the same apartments twice a day. Every time we rented ours out, there were lots of apts on CL, but it seemed like all our prospective tenants were looking at the same 2-3 apartments.
“And I wouldn’t be too thrilled with falling rents if I were you. Many fringe neighborhoods in Brooklyn which have improved substantially in the last several years could easily slip backwards and become high crime areas again if things keep going the way it looks like they’re heading.”
But they won’t, IronBalls, as long as people like you stay away.
11217,
I didn’t say you could find a nice one bedroom on the park in Park Slope for $1500, but you can in other parts of Park Slope.
And you don’t realize how many vacancies are out there right now. Like I said landlords are being very flexible with rents to get their apartments rented. If a landlord lists an apartment for $2000/mo and nobody even comes to look at it, you can bet he’d accept much less if a qualified potential renter showed up.
And I wouldn’t be too thrilled with falling rents if I were you. Many fringe neighborhoods in Brooklyn which have improved substantially in the last several years could easily slip backwards and become high crime areas again if things keep going the way it looks like they’re heading.
lechacal — my situation is very similar to yours (if you replace “3 bed” with “2 bed”).
Signed my lease in fall of 07, renewed for a small increase last year even though I thought it was barely justifiable, and I will either get a nice rent reduction from my landlord this year or move.
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.
I’d love to buy and just be settled somewhere, but I can’t see taking the plunge with all of the uncertainties in the job and real estate markets.