‘Manhattan’ in Rental Market Reports

July 2010 Manhattan Rental Market Report

The Real Estate Group NY is proud to present the July 2010 edition of our Manhattan Rental Market Report™, the only research on the city’s rental rates published on a monthly basis.

The Manhattan rental market is back in the midst of its prime rental season and as prices rise and inventories decrease this month, the bump in activity seems to be helping the market continue its return to normality.

Rental prices are up again this month — .72% in month-to-month comparisons and 3.62% year-over-year. While not large increases, these numbers are in step with normal seasonal fluctuations we would expect to see in July.

At the same time, inventories have decreased this month by 0.78% and vacancies are especially hard to come by in larger units as new renters eager to find shares arrive in Manhattan.

In addition, while the influx of new grads to Manhattan has helped to decrease some of the available inventory, intra-borough renters, who were out in full force last year to take advantage of the incentives many landlords were offering, are staying put this season. This trend is also helping to drive down vacancy numbers.

Seeing the trend of increasing rents and decreasing inventories, landlords and property owners around Manhattan have pulled nearly all incentives from prime Manhattan units. No-fee deals are few and far between, mostly found in the Financial District.

We recommend that renters looking to enter the market start their search now rather than waiting for fall. There are few indications that landlords will introduce more favorable pricing come September and given the low turnover rate in leases this year, renters will have to be diligent in their search to find a value.

June 2010 Manhattan Rental Market Report

The Real Estate Group NY is proud to present the June 2010 edition of our Manhattan Rental Market Report™, the only research on the city’s rental rates published on a monthly basis.

The summer rental season has finally arrived for eager Manhattan landlords and property owners. Incentives have been removed from most properties south of 96th Street and many major landlords have begun increasing prices. In addition, activity is significantly up around the city – especially in larger units. Still, the data this month holds some cautionary notes.

Rental prices were positive this month – up 0.60% vs. May and 2.15% vs. 2009 numbers. Vacancy numbers were less encouraging. Inventories were up 5.34% overall and by as much as 6.15% in doorman buildings.

At the same time, many landlords have become increasingly strategic with their offerings – attempting to turnover as much of their inventory as possible during the busier summer months. Couple this with the significant increase in rental inventory that Manhattan has seen over the past few years and to some extent, an increase in inventory should be expected during this time of year.

As the summer season continues, we encourage landlords to carefully monitor their inventories as without real employment growth, there is likely to be a finite supply of prospective renters to soak up the excess vacancies.

May 2010 Manhattan Rental Market Report

The Real Estate Group NY is proud to present the May 2010 edition of our Manhattan Rental Market Report™, the only research on the city’s rental rates published on a monthly basis.

Manhattan is abuzz with news that the rental market has “recovered” and the data this month confirms that the market is gaining strength and returning to some sense of normality. As the summer months usually see an increase in both activity and prices, it is not unusual for us to note positive numbers this month; however, given the depressed activity we have previously been observing, these statistics are a welcome reprieve for landlords and property managers around Manhattan.

Rents are up 1.94% vs. April and 1.72% vs. May of 2009. Moreover, inventories slightly decreased this month, falling 0.71%. This increase in prices coupled with the decrease in inventories lends support to assertions that the rental market has finally turned the corner.

Having seen that the market is gaining strength, many major landlords have pulled their incentives this month. As summer activity increases, the remaining deals with incentives will be snatched up by motivated early summer renters.

April 2010 Manhattan Rental Market Report

The Real Estate Group NY is proud to present the April 2010 edition of our Manhattan Rental Market Report™, the only research on the city’s rental rates published on a monthly basis.

There is good news for Manhattan’s rental market this month. Rents are beginning the slow climb upwards and have risen 1.10% overall since March and are actually up 0.27% vs. 2009 numbers. In addition, some landlords have already begun to pull incentives in preparation for the summer months. These are both positive indicators that the market is finally gaining strength.

Inventories, however, are more indicative of a still uncertain consumer sentiment. Vacancies are up 1.17% across Manhattan, creating some doubt as to the sustainability of the rent upticks seen recently.

As activity continues to increase this summer, it appears that the market will continue to gain ground. Yet, given the depths the market fell, in addition to a lack of real employment growth, it seems that it may take longer than landlords anticipated to recover their losses.

March 2010 Manhattan Rental Market Report

The Real Estate Group NY is proud to present the March 2010 edition of our Manhattan Rental Market Report™, the only research on the city’s rental rates published on a monthly basis.

The Manhattan rental market continues its slow return to normality this month. Rents are up 0.62% across Manhattan this month vs. last and the gap in year-over-year numbers continues to close. March 2010 numbers only lag 2009 figures by 1.52%. Vacancies, however, did see an increase of 1.21% overall.

While adjustments from landlords and property managers were sparse this month, as the spring and summer months bring an increase in activity to the market, renters should expect to see steady price increases from landlords looking to recoup some of their down market losses.

February 2010 Manhattan Rental Market Report

The Real Estate Group NY is proud to present the February 2010 edition of our Manhattan Rental Market Report™, the only research on the city’s rental rates published on a monthly basis.

Manhattan’s rental market continues to sit at what appears to be the bottom of this downturn. Rents are continuing to remain virtually flat in month-to-month comparisons, “up” on average 0.19%, but the gap between year-over-year figures is closing slightly with rents down only 2.99% vs. 2009.

The bright spot is that vacancies continue to decrease. Doorman vacancies are down 9.65% and overall inventories are down 3.02%. Since February has historically been a slow month for the rental market, this decrease in inventories coupled with prices holding steady is a positive indicator that the market is gaining some strength.

Still, landlords and property managers around Manhattan are beginning to become anxious for a price rebound. Yet, as the bottom continues to stretch out, it’s clear that normalcy may return soon, but the road to a full recovery is going to be much slower than many had hoped for.

January 2010 Manhattan Rental Market Report

The Real Estate Group NY is proud to present the January 2010 edition of our Manhattan Rental Market Report™, the only research on the city’s rental rates published on a monthly basis.

The seasonal bounce back that we usually see in a “normal” January rental market, in addition to delayed renters having been postponed by their corporate employers, has combined this month to not only lower vacancies but keep prices stable as well. Non-doorman vacancies fell 17.66%, reinforcing that Manhattan renters are still in recession-mode, seeking out low prices and value, but still willing to execute leases.

While inventories are falling, prices have continued to hold this month; rents averaged less than a 1% decline overall. Category and neighborhood comparisons also remained stable, with no change being larger than 10%. Yet, prices remain seriously depressed in year-over-year comparisons.

By comparing January 2010 with January 2008 numbers, we can ultimately see just how far Manhattan has fallen. When compared to the NYC Rent Guidelines Board’s annual allowable increase on renewal leases, which is 3% for a one-year lease and 6% for a two-year lease, rents have fallen significantly. Rents in non-doorman properties have declined approximately 6.5% since 2008, while doorman units are down 10.5%. Clearly this illustrates that the rental market has a long way to climb to rebound. Yet while recovery may be a long way off, the absorption in supply and increase in demand seen this month leads us to believe that Manhattan’s rental market is at least on its way to a return to “normalcy.”

Year End Manhattan Rental Market Report 2009

We are proud to present The Real Estate Group’s third annual Year End Report, the summation of a year’s worth of data collected from our monthly Manhattan Rental Market Reports. We hope you and these pages useful in determining the rental trends of Manhattan’s major neighborhoods, as well as the overall climate of the Manhattan rental market during the course of 2009.

Manhattan’s rental market opened 2009 with a continuation of the downward trends that began in the fall of 2008. Landlords quickly saw that incentives were needed to decrease inventories and Manhattan rapidly became a no fee market.

Larger landlords who were able to offer concessions and extras like free rent saw their inventories steadily decrease over the year; however, smaller landlords with less price flexibility had more difficulty getting their units rented.

Manhattan’s seasonality trends in 2009 were muted, yet a moderate increase in activity during the summer months helped prices to stabilize and vacancies to decrease. Some landlords tested rent increases and forgoing concessions throughout the summer, but many abandoned these changes as they saw inventory sit vacant during their “peak” rental season. As fall approached, there was hope for a sustained push from renters whose starting dates were moved into the later part of 2009; however, fall and winter came and went with little change. While we expect a slow start to 2010, there is potential for the market to return to stability over the next year. The most important factor for a market improvement is employment, and as it steadily improves, we can expect the rental market to do the same.

December 2009 Manhattan Rental Market Report

The Real Estate Group NY is proud to present the December 2009 edition of our Manhattan Rental Market Report, the only research on the city’s rental rates published on a monthly basis.

This month, asking rents continue to buck downward seasonal trends by remaining flat vs. last month. While the data continues to lag 2008 numbers, there is a clear disparity between units with and without service. Doorman units are down 5.79% compared to December 2008, while non-doorman units are only down 1.74% vs. last year. Non-doorman units, however, show much more modest changes, declining 1.19% vs. November while non-doorman units are actually up 0.87%.

And as we continue to see, whatever prices do, vacancies will follow. Renters have welcomed the discounts on doorman units and continue to keep inventory levels stable. Non-doorman vacancies, however, rose by 6.08% this month — reinforcing that renters are looking for deep discounts and perceived value.

As the New Year approaches, the good news is that Manhattan’s rental market appears to be stabilizing to some extent. Many of the aggressive incentives that were previously being offered this year have been scaled back and landlords seem to be increasingly comfortable with their situations.

Though the outlook for 2010 is still uncertain, the data does offer some hope for improvement.

November 2009 Manhattan Rental Market Report

TDG/The Real Estate Group NY is proud to present the November 2009 edition of our Manhattan Rental Market Report, the only research on the city’s rental rates published on a monthly basis.

This month the Manhattan rental market continues to lag in year-over-year performance, but rents have remained relatively stable versus last month. Overall, rents fell only 0.03% this November – a time when we would normally expect to see a seasonal decline. The largest price change this month was actually an increase in doorman one-bedroom units of 1.12%.

The one bright spot this month is the vacancy numbers. Although we reported last month that the delayed employment trend would not have a significant impact on the fall numbers, it may in fact finally be helping the rental market this month. These renters have come to Manhattan seeking value and have helped to decrease inventories by 5.36% overall this month – and a whopping 11.94% in non-doorman units.

As the trends above appear to be adding stability to the market, there still seems to be some disparity. Some owners are seeing increasing demand, either from new renters or by negotiating with current tenants to renew their leases, yet others carrying excess inventories are being forced to re-up incentives to appeal to those looking for value.

While November offers some positive news for the health of the market, the future is still uncertain. We will be carefully monitoring the results of this years holiday season spending in addition to the changing employment picture, which together may offer some foreshadowing as to how the 2010 market will unfold.