Residential and Office Rents Increase in NYC
- Jul 15, 2011
A report by Citi Habitats, New York’s largest rental residential brokerage, shows that the city’s rents continued to increase in the second quarter while vacancy rates have fallen to a historic 0.72 percent in Manhattan. Average rents for apartments of all sizes have increased as well–9.1 percent for studios, 9.2 percent for one-bedroom units, 10.8 percent for two-bedrooms and 11.3 percent for three-bedrooms. Gary Malin, president of Citi Habitats, said that the increased figures are the result of the growing number of people who come to Manhattan looking for jobs
Another report, issued by Prudential Douglas Elliman and Miller Samuel, reveals that 8,572 units were rented in the second quarter, which translates into a 51.5 percent year-over-year increase, with an average apartment rental on the market for 33 days instead of 40 days recorded in 2010.
Landlords are thus able to lower rent concessions; 11 percent of the rental transactions sealed by Citi Habitats in June this year included concessions such as one month of free rent or payment of brokerage fees, while in June 2010 concessions were as high as 28 percent.
Crain’s also points out Condé Nast’s 34 percent–or almost 1.1 million square feet-jump in leasing at 1 World Trade Center, making Manhattan’s total leasing activity reach 4.3 million square feet, twice the amount of leased space in June 2010. Condé Nast’s activity is definitely helping downtown’s recovery, as the towers rising on the World Trade Center site will offer tenants some of the most technologically advanced, sustainable buildings in the city. According to Crain’s, the large number of residents moving into the area and the growing retail space options will also have a positive impact on downtown’s revitalization.