Equity Residential has a New York story, and it doesn’t have a cheerful ending — at the very least, not but.
The metro space, the place builders are churning out hundreds of latest leases, and tenants have the posh to discount, was the one one which confirmed a decline in lease for the publicly traded landlord in 2017.
“New York was our worst-performing market,” David Neithercut, the agency’s chief government officer, stated on a convention name at present. “We nonetheless anticipate New York to be our worst-performing market.”
All informed, about 19,000 newly developed flats can be listed for lease this yr within the New York Metropolis metro space, the corporate’s chief working officer, David Santee, stated on the decision. Of that complete, 62 % might be in Brooklyn and Lengthy Island Metropolis. The reductions that landlords might have to supply to get these models crammed may push down rents in Manhattan, Santee stated.
Fairness Residential’s common lease within the New York space declined zero.three % within the fourth quarter from a yr earlier, the corporate reported in earnings outcomes Tuesday. That’s not dangerous in comparison with a 5.four % decline in northwest Queens, for instance, for all flats rented there in December, based on Douglas Elliman Actual Property and Miller Samuel Inc.
Nonetheless, not one of the different markets within the agency’s portfolio — which additionally consists of Los Angeles, San Francisco, Seattle, Boston and Washington, D.C., amongst others — posted a decline in lease.
For 2017, internet working revenue from the New York space fell 1.eight % — additionally the one adverse end in a single market.