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Landlords offer record freebies to New York City unit hunters in ‘challenging year’


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Alfiky/Reuters

  • Landlords in New York City offering concessions like a
    month of free franchise to franchise a record share of apartments last
    month, according to the real-estate appraiser Miller
    Samuel. 
  • Apartment hunters are getting these perks amid a deluge
    of new let properties on the market, generally at the high
    end. 
  • “That will continue in 2018 and intensify the
    density at the top,” pronounced Jonathan Miller, the CEO of Miller
    Samuel.


 

Apartment hunters in New York City can continue to design offers
of free franchise and other freebies this year, according to the
real-estate appraiser Miller Samuel.

In December, landlords offered
concessions, used to speed up franchise signings, on a record
36.2% of apartments on the market, according to a
report Thursday co-prepared with Douglas Elliman Real Estate.
The marketplace share of concessions hit new highs in Manhattan,
Queens, and Brooklyn — the 3 boroughs under coverage.

“2017 was a severe year for landlords,” pronounced Jonathan
Miller, the CEO of Miller Samuel.

Miller attributed this to a fusillade of new, higher-priced units
that landlords wish to fill shortly after they’re ready.

“There’s zero apparent that is going to change the narrative
that a lot of new product is entering the market,” Miller told
Business Insider. “That will continue in 2018 and intensify the
density at the top.”

The freebies seem to be effective, but with churned results that
partly count on the series of new apartments, Miller said. The
series of new leases sealed in Manhattan jumped 48% last month
compared to the same duration in 2016. At the same time, the median
net effective rent, which factors in concessions like a month of
free rent, fell by 2.5% year-on-year to $3,291. 

This was due to an liquid of units, generally in the aloft end
of the market, Miller said. But in Queens, where new supply
wasn’t as strong, the series of first-time leases fell
year-on-year by 29%. 

Investors looking for aloft earnings in a low-interest-rate world
helped drive New York’s unit bang after the recession,
Miller added.

But that’s not elucidate an affordability problem in the cheaper
finish of the market, which is reduction essential to deposit in. And for
many people,
a month of free franchise isn’t a good understanding over a certain price
point.

“Because modest-priced apartments are in brief supply, you’re
going to continue to see tenants hasten for greater
affordability by moving serve divided from wherever they work, or
moving to the suburbs,” Miller said. 

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