Condominium rents in Manhattan fell probably the most in virtually 4 years as landlords made deeper worth cuts to lure tenants in a market brimming with decisions.
Landlords agreed to simply accept a median lease of $three,295 final month, or 2.7 % lower than the earlier December, appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate stated in a report Thursday. It was the most important annual decline since February 2014, and solely the second final yr.
After two years of propping up house costs with behind-the-scenes offers of free months and present playing cards, house owners contending with a flood of provide might not maintain up the dam. They nonetheless provided sweeteners — final month, in 36 % of all new leases, a report share — however additionally they agreed to whittle what they charged in rents.
“The concessions have been working for some time, however the shopper is now actually pushing extra on the negotiating aspect of the rents,” stated Hal Gavzie, who oversees leasing for Douglas Elliman. “The worth factors wanted considerably of a correction.”
The cuts appear to have helped: The variety of new leases signed final month jumped 48 % from a yr earlier to five,269. The emptiness price declined to 1.9 %, the bottom for a December in 5 years, the companies stated.
After concessions resembling free months and the cost of dealer’s charges are factored in, tenants paid a median of $three,208, down 2.5 % from a yr earlier. That decline was additionally the most important since February 2014.