Parsegian of Halstead rented a four-bedroom apartment in one of the Trump Tower’s top floors for $23,000 a month. If vacancies hold at their current levels, or creep up even further, rents could start falling even more, and not just in the overstocked southern tip of Manhattan.Īt the tiptop of the luxury pyramid, demand remains surprisingly steady, albeit at reduced rates. According to the November rental report from the Real Estate Group, the average rent for a two-bedroom doorman apartment in the Financial District fell nearly $400 from last November to this November. The process has already started in some neighborhoods. “Pricing properly is everything right now landlords need to protect their bottom line and prevent properties from languishing on the market,” said Scott Stewart, a senior vice president at Corcoran. In this environment of price-sensitive demand and high vacancy rates, landlords are left with no choice but to lower their rents, even in high-priced, amenity-laden developments.
That, of course, has landlords and brokers a little bit anxious as they desperately search for a new equilibrium in a changed marketplace.
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“People now are price-conscious rather than amenity-conscious,” Mr. Flux Apartments 2838 Fremont Avenue South, Minneapolis, MN 55408 (155 Reviews) 1,280 - 3,135/mo Share Feedback Write a Review Leave a Video Review New View Community Timeline Move-In Specials Receive 6 weeks free Plus receive 12 months free parking. Two or three years ago, prospective renters were preoccupied with finding an apartment that offered unnecessary but nonetheless coveted add-ons like in-house gyms or rooftop decks, according to Citi Habitats’ president, Gary Malin. The gluttonous and indulgent era of the past several years, when no rent was too high, is likely finished, supplanted by a drastically more parsimonious environment. Baum has noticed a surge in vacancies in Chelsea, the East Village and the Financial District, three popular neighborhoods that have a diverse collection of residents willing to pay the inflated rents to live there. “It’s fair to say that people are nervous right now,” said Daniel Baum, chief operating officer of the Real Estate Group New York. Even if two people split the rent, it would still require salaries of $160,000 to $200,000 per person.īut what’s going to happen now that the city’s financial sector, the primary market for such high-paying jobs, could shed a mind-boggling 48,000 jobs? In order to qualify for a lease in such an apartment, a tenant will have to earn approximately 40 to 50 times the monthly rent in annual income in this case, between $320,00 and $400,000. Let’s put the basement for rent in a high-end two-bedroom apartment at $8,000. Suddenly, well-compensated bankers, analysts and lawyers haven’t the stomach to pay $10,000 a month or more on rent. The very nature of this financial crisis, with its origins in the well-heeled corridors of Wall Street investment banks, is likely to drive down rents across the board, but particularly in the ritzy doorman palaces around Central Park and other highly sought-after neighborhoods throughout Manhattan.
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