Manhattan rental rates to reach record highs in 2011: Marcus & Millichap

White-collar job growth in Manhattan will spur demand for market-rate apartments in the city this year and push rents to record highs, Marcus & Millichap predicts in a market report released today. According to the report, New York City’s office-using employers are poised to see their largest year for hiring in a decade, adding a total of 45,000 new positions to their payrolls. In turn, that will boost the number of people looking to rent apartments, pushing down the vacancy rate to 3.3 percent in that sector. Meanwhile, rental rates will reach record highs, Marcus & Millichap said, with asking rents rising 5.7 percent to $3,790 per month. Sales activity in the multi-family sector is also expected to increase in 2011, with REITs, institutions and some deep-pocketed investors leading the charge. Properties with 20 or fewer units and deferred maintenance will be eyed closely, as will Class A buildings on the Upper East Side. TRD

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