Equity Residential executives: “We still expect New York to be our worst-performing market.”

Rent averages declined 0.3% in the fourth quarter

New York /
Feb.February 01, 2018 09:11 AM

David Santee and David Neithercut

Amid a glut in available rental properties, Equity Residential reported a decrease in rental income in New York City — the public company’s only market with a reported decline in the fourth quarter.

Equity, one of the largest apartment owners in the U.S., reported an average 0.3 percent decrease in rent in New York, Bloomberg reported. None of the real estate investment trust’s other markets — including Boston, Washington D.C., Seattle, Los Angeles and San Francisco — saw a decline.

“New York was our worst-performing market,” David Neithercut, the firm’s chief executive officer, said on a conference call on Wednesday. “We still expect New York to be our worst-performing market.”

The overall decline shouldn’t come as too great a surprise; about a year ago Equity said it expected declines at its New York City holdings, and budgeted $4 million in funds dedicated to concessions, which pushed down profits.

Roughly 19,000 new apartments are expected to hit the New York market this year, 62 percent of which will be in Brooklyn and Long Island City. In October, Equity executives indicated that their Manhattan-centric portfolio hadn’t seen much of an impact from competition in Queens.

But on Tuesday, David Santee, the company’s COO, said prices in Manhattan could be driven down by landlords offering discounts in Long Island City and Brooklyn. [Bloomberg]Kathryn Brenzel


Related Articles

arrow_forward_ios
Daniel Grollo and 106 Central Park South (Photo Illustration by Steven DIlakian for The Real Deal with Getty Images)
Trump Parc condo tied to embattled Australian construction magnate hits market
Trump Parc condo tied to embattled Australian construction magnate hits market
Richard Gere and Ryan Murphy with 81 Lyndel Road (Redfin, Getty)
Celeb buyer of Richard Gere’s Westchester estate revealed
Celeb buyer of Richard Gere’s Westchester estate revealed
REAL NY's Louis Adler, Compass' Eugene Litvak, and ROART's Ran Oron with the Milk Factory (REAL New York, Compass, ROART, Milk Factory)
East Williamsburg’s resi market reaches new heights
East Williamsburg’s resi market reaches new heights
Homeward founder Tim Heyl (Homeward, Getty Images)
Power buyer Homeward lays off 20% of staff
Power buyer Homeward lays off 20% of staff
Louise Blouin with 366 and 376 Gin Lane (Realtor, Getty)
Art publisher wants $150M for Southampton estate
Art publisher wants $150M for Southampton estate
From left: Richard Gere, Paul Simon and Edie Brickell in front of 82 Brookwood Lane in New Canaan, Connecticut (Getty Images, William Pitt Sotheby's International Realty)
Richard Gere revealed as discount buyer of Paul Simon’s estate
Richard Gere revealed as discount buyer of Paul Simon’s estate
Ascent Development’s Tien Vominh and Modern Spaces' Eric Benaim with 45-30 Davis Street (LinkedIn, Modern Spaces, Marvel Architects)
Modern Spaces sues developer over LIC exclusivity agreement
Modern Spaces sues developer over LIC exclusivity agreement
Bridgehampton, NY (Google Maps)
Divorce lawyer sells Bridgehampton home for $45M
Divorce lawyer sells Bridgehampton home for $45M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...