The Real Deal New York

With apartment vacancies up, landlords rethink renter concessions

September 20, 2010 09:30AM

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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