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New York

With supply and concessions on the rise, owners struggle to find renters for luxury apartments

Owners are taking deep price cuts at the toniest addresses in the city

40th floor unit at One57, previously rented for $13,000/month
40th floor unit at One57, previously rented for $13,000/month

Even with steep price cuts and a slew of concessions, owners are struggling to secure renters for their luxury apartments.

Developers are increasingly offering free rent — in some cases three months worth — and it’s becoming difficult for individual owners to compete, the Wall Street Journal reported. Supply is also high: Currently, 1,100 apartments (mostly in Manhattan) are listed for $10,000 a month or more. A recent Douglas Elliman report noted that just under 24 percent of Manhattan leases signed in October had some type of concession.

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“The market has changed completely,” Sherri Shang, a Douglas Elliman Broker, told the Wall Street Journal. “I never expected three years later that even with a Central Park View, that it would be so hard to rent out now.”

Shang is struggling to find a tenant for a 40th-floor condo at One57, a Midtown  luxury supertall developed by Extell Development Company. The apartment has previously commanded $13,000 a month, but Shang now can’t seem to find a tenant willing to pay even $10,000. She’s not alone. At an apartment at Trump Tower, asking rent for a two-bedroom apartment dropped from $25,000 in 2013 to $18,000 in October.

According to appraiser Jonathan Miller, about 20 percent of new condo sales in Manhattan are to investors, many of whom rent the units before selling again. [WSJ] — Kathryn Brenzel 

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