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Median rent for new development units drops 8% in April

A weekly feature bringing you the industry’s latest intel

Credit: Savills Studley
Credit: Savills Studley

According to the most recent market reports, concessions are up and rent is down across most metrics in Manhattan. Overall, median rent fell 1.8 percent in Manhattan, dragged down by softness in the top 10 percent and in new development units, which fell 7.8 percent in April compared to the same month last year, according to a Douglas Elliman report.

Residential

Manhattan, Brooklyn and Queens rentals | Douglas Elliman
Median rental prices in Manhattan decreased by 1.8 percent in April year-over-year overall, with luxury rents declining 5.8 percent and new development prices dropping 7.8 percent. Median rent in Brooklyn stayed the same while Queens rents increased by 12.2 percent. Read the full report here.

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Broker confidence report | REBNY
Broker confidence declined in the first quarter of 2017 in both the commercial and residential markets, after registering an uptick in the final quarter of 2016. Read the full report here.

Luxury Sales | Olshan Realty
The total asking dollar volume for the 37 luxury contracts signed last week, half of which were new development units, was $266.5 million. Read the full report here.

Commercial

Effective rent index | Savills Studley
In Midtown net average rent increased 3.6 percent in 2016 to $68.80 per square foot, but the effective rent after concessions, fees, and taxes, increased less than 1 percent. The effective rent for tenants was $81.50 and $43.20 for landlords. Read the full reports for Midtown and Downtown here.

The effects of LIHTC | Furman Center

The federal Low-Income Housing Tax Credit program is up for reform, and President Trump’s tax plan proposes to lower the corporate tax to 15 percent from 35 percent could make the program less attractive. Read the full brief here.

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