A new report showing an increase in Manhattan apartment vacancies has prompted some landlords to wonder whether they’ve begun yanking renter concessions from the table too soon. The report, from Citi Habitats, pegged vacancies at 1.1 percent at the end of August, well below the 2.46 percent registered in February 2009, but up 0.88 percent from July. It was the first month-over-month increase of 2010, and according to Crain’s, the data took many in the industry by surprise at a time when renter incentives are on the decline. Century 21 NY Metro said just one-third of its rental listings have incentives today, compared with 75 percent one year ago, while 20 percent of Citi Habitats listings come with incentives, down from 60 percent in December 2009, according to the brokerage. Brokers warn that the traditionally slow fall season could be worsened if landlords pull back concessions too soon, which could ultimately force them to cut rents as well. [Crain's]

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Concessions for condo buyers are largely a thing of the past for
Alchemy Properties, founder and president Kenneth Horn told the New
York Times. At 462 West 58th Street, for example, the company is now
shaving just 1 to 2 percent off its condominium asking prices, down
from between 12 and 14 percent last October, he said. Transfer and
mansion taxes are still going on Alchemy’s tab, though. Horn, who is
also set to complete the eco-friendly Griffin Court condo in Midtown
West this month, went on to explain that building green is ideal but
not always practical for a smaller developer. “The problem is it’s
expensive to apply for LEED certification — I think it was like a
quarter of a million dollars,” he said. “In a larger building, the
economies of scale work, but in a smaller building, when you’re a small
developer, it hurts.” Griffin Court, which sits around a
9,000-square-foot courtyard, has about four or five contracts signed
and six or seven in negotiation, he said. [NYT]

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Concessions are a thing of the past as the Manhattan rental market rebounds, according to developers and agents, who say that rental units are moving faster while rates are climbing. For example, new rental developments like 505 West 37th Street, which launched in March and is seeing around 30 units signed every week, are showing palpable signs of rebound, according to the New York Post. Gary Jacob, executive vice president with luxury rental leasing and management firm Glenwood, said that one notable change in the market is the disappearance of concessions. “Last year we were giving one month’s free rent on every building,” Jacob said. “In February, we stopped giving concessions at any of our buildings.” [Post]

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Concessions are a thing of the past as the Manhattan rental market rebounds, according to developers and agents, who say that rental units are moving faster while rates are climbing. For example, new rental developments like 505 West 37th Street, which launched in March and is seeing around 30 units signed every week, are showing palpable signs of rebound, according to the New York Post. Gary Jacob, executive vice president with luxury rental leasing and management firm Glenwood, said that one notable change in the market is the disappearance of concessions. “Last year we were giving one month’s free rent on every building,” Jacob said. “In February, we stopped giving concessions at any of our buildings.” [Post]

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Each and every day, the press provides information on companies leasing
office space in Manhattan. The articles provide the asking rent for
space, but fail to provide the reader with the most important
information in the minds of those seeking office space: actual rent,
concessions and the other terms and conditions of the new lease. “Rental rates have come down, and once again New York City is
affordable for commercial tenants,” said Glenn Markman, executive vice
president at Cushman & Wakefield. “A tenant who is in a position to
sign a lease will look back five years from today and realize that they
‘hit the market at the right time.’” Comments