Manhattan renters score record incentives in apartment glut
At the end of last month, there were 7,132 apartments available for rent in Manhattan, a 23 per cent jump from October 2015
Manhattan landlords are giving renters more financial incentives than ever in a bid to keep apartments from going empty while the market gets flooded with new supply.
Lease-signing sweeteners, such as a month of free rent or payment of broker fees, were offered on 24 per cent of new rental agreements in October, up from 10 per cent a year earlier, according to a report Thursday by appraiser Miller Samuel Inc and brokerage Douglas Elliman Real Estate.
It was the biggest share for any month since the firms began tracking the data six years ago. Landlords also agreed to cut an average of 3.1 per cent from their asking rents in order to reach a deal.
Property owners in Manhattan are working harder to lure tenants who now have the ability to bargain-shop amid a surge of high-end apartment construction that shows no signs of abating.
The final months of the year are considered to be the slowest time for apartment leasing in New York City, adding to the urgency for landlords, said Jonathan Miller, president of Miller Samuel.
“Concessions are one way to keep the vacancy rate in check and keep the buildings as full as possible,” Miller said in an interview. “It’s a baseline metric we’re going to be dealing with for the next several years, at least.”
At the end of last month, there were 7,132 apartments available for rent in Manhattan, a 23 per cent jump from October 2015, according to the report. The annual growth in listings has topped 20 per cent every month this year since March.