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

TRD New York /
Nov.November 18, 2016 09:34 AM
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.

“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 


Related Articles

arrow_forward_ios
Vincent Gallo and Trump Tower (Credit: Getty Images, StreetEasy)

Actor Vincent Gallo in contract for Trump Tower condo

José Cuervo owner Juan Beckmann Vidal and 1010 Park Avenue (Credit: Getty Images, StreetEasy)

Mexican billionaire buys Park Ave pad for $25M amid shopping spree

Elena Sapir and Trump Tower at 725 5th Avenue

Tamir Sapir’s widow sells Trump Tower pad

Mayor Bill de Blasio at a Green New Deal rally at Trump Tower (Credit: Getty Images)

Not just Trump Tower: These NYC buildings would get absolutely hammered by Green New Deal fines

Trump Tower at 721 Fifth Avenue (Credit: Getty Images)

Trump presidency is not helping business at Trump Tower

Felix Sater: “My main motivation was in building a Trump tower in Moscow and making $100M in the process”

Mueller Report provides new info on Trump Tower Moscow, Felix Sater and more

Australian tech millionaire lists $23M condo at Trump International

arrow_forward_ios