Good Manhattan rental deals to be had
January 06, 2009 02:00PM By Michael Stoler
Amid a weakening New York City real estate market, Manhattan renters are gaining the upper hand as market-rate rents drop and the vacancy rate rises.
For the first time in recent history, landlords are no longer in denial about current conditions, and are trying to entice renters by reducing asking rents from record highs, as well as providing incentives.
Perks have included a concession of one to two months of free rent, payment of brokerage fees, free health club membership, invitations to complimentary breakfasts and cocktail parties, free storage space and reduced monthly rates for parking.
Deals for market-rate apartments are available from the brokerage community and individual owners, and others can be found by visiting the Web sites of landlords and managers of residential buildings.
If one visits the Web site of Glenwood Management, one of New York City's finest developers of market-rate apartments, a prospective tenant would be able to find out that a three-bedroom, two-bath apartment at the Brittany, at 1775 York Avenue, between 92nd and 93rd streets, is available for a net effective rent of $4,670 per month. The apartment has a washer and dryer, nine-foot ceilings and walls of windows.
Another excellent opportunity is available at Glenwood's Bamford at 333 East 56th Street, between First and Second avenues. A two-bedroom apartment with terrace, eat-in kitchen, and a living room over 420 square feet, is now being offered for $4,120 per month, in a building which has a health club and swimming pool.
Further east, an individual condo owner is offering a steep 36 percent discount to a new tenant to rent his two-bedroom, two-bath unit on the 26th floor of 100 United Nations Plaza, near 45th Street and First Avenue. The unit has a balcony, and East River views. A previous tenant paid a monthly rent of $6,200, but now the unit is available for $4,000 a month, plus another bonus -- the developer is offering one free month for a two-year lease.
At the West Side's Concerto, at 200 West 60th Street, between Amsterdam and West End avenues, rent for a three-bedroom, three-bath unit on the 49th floor with a balcony, has been reduced from $7,300 to $5,200 per month.
With the bleak economic outlook expect tenants to have the upper hand in negotiating rents for market-rate apartments.
Michael Stoler is a columnist for The Real Deal and host of real estate programs "The Stoler Report" and "Building New York" on CUNY TV and on WEGTV in East Hampton. His radio show, "The Michael Stoler Real Estate Report," airs on 1010 WINS on Saturdays and Sundays. Stoler is a director at Madison Realty Capital as well as an adjunct professor at NYU Real Estate Institute, and a former contributing editor and columnist for the New York Sun.
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Comments
Anonymous
what about studio's or 1br? Is this old guy out of touch with the youth or what?
Comment #1 Posted By: Anonymous 01/06/09
Anonymous
Is this an article or an ad?
Comment #2 Posted By: Anonymous 01/06/09
Anonymous
michael stoler knows ny real estate, and ny business inside and out. he's as experienced and passionate as it gets when it comes to ny real estate.
Comment #3 Posted By: Anonymous 01/06/09
Anonymous
Michael Stoler can walk on water. I once saw him rise from the dead.
Comment #4 Posted By: Anonymous 01/06/09
Anonymous
at least stoler tells it like it is he is showing you by examples of what the rents really went down the Glenwood apartments are down by at least 20% to 30% Unforuntately the brokers and the owners really prefer never to tell the truth someone has to be upfront in the community and it is stoler
Comment #5 Posted By: Anonymous 01/06/09
Anonymous
Stoler is awesome, loved his video bit about investment properties featured on the real deal
Comment #6 Posted By: Anonymous 01/06/09
Anonymous
So how does Tishman Speyer get away with raising rents in Stuyvesant Town?
Comment #7 Posted By: Anonymous 01/07/09
Anonymous
I'm in a related rental and when they sent my renewal lease it had increased about 5%. I got them to agree to keep it the same as my old rent.
Comment #8 Posted By: Anonymous 01/07/09
Anonymous
I am a Broker for over 4 decades and I can attest to Mr. Stoler's accuracy. What he doesn't say is why, how long or what the near future is going to bring for NYC. It is fairly obvious to anyone who has been around for awhile that this is the worst of the many cycles we have been thru and there is a good chance it will last a few years and not just a few months as most would like to think. We are now back to rents from 2002-2003 but unfortunately for owners the expenses are from 2009. So the City will have to do something to help out owners or they will just end up giving back the properties. Why would someone new choose to invest in buying a property in Manhattan with rents going down and expenses going up? All the talk about "buying rent-regulated" buildings my MK is just a sales pitch as these apartments are not renting now and are decreasing. Yes things will come back as they always do but the next year or two will see a massive shakeup in the RE Brokerage industry with many mergers, closings or bankruptcies.
Comment #9 Posted By: Anonymous 01/07/09
Anonymous
One of the most optomist landlords who has never reduced rents in his market rate apartment buildings told me today, I will do anything to keep a customer. One to two months free rent, broker fee, free health club, and if I have to discount 10-25% to keep a customer, I will do it. The market is dead, both multifamily, sales and office. The worse has not been seen. Just watch Stoler Report over the past two months on tv or the internet and hear the reality of what's going on. Stoler was once optomist but he has come down on the market and only expects worse. He has truly become Dr. Doom & Goom, but he knows exactly what is going on. The idiots at crains and the other rags have no ideas. They are spoon feed the material and just report what the pr agent or brokerae community told them after a free breakfast or meal
Comment #10 Posted By: Anonymous 01/07/09
Anonymous
This old fart is working or promoting Glenwood mgmtn... he prolly owns the building..
Comment #11 Posted By: Anonymous 01/09/09
Anonymous
He absolutely does not own Gleenwood moron, nor promoting them. If you anything at all about the RE business, you would not be assuming, that's a no no. The RE industry is headed for disaster and the truth be told, when Titans like Lehmans & Bear drop to there knees,the RE industry will be compromised in a BIG way. Embrace yourselfs for we are not even close to the bottom. Stoler is expressing that business is horrible and the one thing you should always know that rents are in a downward pattern (he is just stating the obvious) and put your seatbelts on people!!
Comment #12 Posted By: Anonymous 01/11/09
Anonymous
If you know anything about real estate you know who Mike Stoler is - watch his show it's terrific and has lots of very knowable real estate owners and other professionals in the industry. He truly knows the market.
Comment #13 Posted By: Anonymous 01/24/09