Manhattan Rental Market Report

Updated: November 2009

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Table of Contents:

• Introduction
• A Quick Look
• Mean Manhattan Rental Prices
• Manhattan Price Trends
• Neighborhood Price Trends
  • Upper West Side
  • Upper East Side
  • Midtown West
  • Midtown East
  • Murray Hill
  • Chelsea
  • Gramercy Park
  • Greenwich Village
  • East Village
  • SoHo
  • Lower East Side
  • TriBeCa
  • Financial District
  • Battery Park City
  • Harlem
• The Report Explained

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Introduction

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.

A Quick Look

Non–doorman Buildings (Average Prices)
	Most Expensive	Least Expensive
Studios	TriBeCa $3,491	Harlem $1,231
One–bedrooms	TriBeCa $4,915	Harlem $1,603
Two–bedrooms	TriBeCa $6,928	Harlem $1,893

Doorman Buildings (Average Prices)
	Most Expensive	Least Expensive
Studios	TriBeCa $2,898	Harlem $1,305
One–bedrooms	SoHo $4,885	Harlem $1,800
Two–bedrooms	SoHo $7,833	Harlem $2,714

Greatest Changes Since October:

• Non–doorman studios – TriBeCa – Up 11.93% ($372)
• Non–doorman one–bedrooms – TriBeCa – Up 7.03% ($323)
• Non–doorman two–bedroom – Midtown West – Down -9.00% ($233)

• Doorman studios – Battery Park City – Down -8.46% ($197)
• Doorman one–bedrooms – Lower East Side – Down -10.17% ($280)
• Doorman two–bedroom – Lower East Side – Down -14.43% ($659)

Year-over-year Changes:

Non–doorman Citywide Rents: November ’08 vs. November ’09
	November ’08	November ’09	Change
Studios	$2,005	$1,913	-4.59%
One–bedrooms	$2,777	$2,629	-5.33%
Two–bedrooms	$3,844	$3,602	-6.30%

Doorman Citywide Rents: November ’08 vs. November ’09
	November ’08	November ’09	Change
Studios	$2,430	$2,294	-5.60%
One–bedrooms	$3,510	$3,319	-5.44%
Two–bedrooms	$5,380	$5,078	-5.61%

Notable Trends:

Rents plateau — Year-over-year comparisons continue to lag this month, but rents are relatively flat in month-to-month comparisons. This breaks from traditional seasonal trends in which we would normally see rents pushed downward in the slower winter months.

Vacancies fall — Vacancy numbers are also bucking the trend this month. Inventory around Manhattan is down 5.36% this month – with non-doorman units down 11.94%. It seems that the renters who were notably absent this summer have finally returned to the market and are looking for value.

Renew or not to renew? — Many clients have come asking advice on whether or not to renew their leases. While some landlords are offering concessions for renewals, some are not. Our best advice? Get out there and check out what you can get and then be prepared to have a conversation with your landlord. And remember, not all research can be done online. The best way to compare units is to go out and see some.

Where Prices Decreased:

Harlem— Non-doorman studios (-2.45%), non-doorman one-bedrooms (-2.27%), doorman one-bedrooms (-1.55%), non-doorman two-bedrooms (-6.83%)

Upper West Side— Non-doorman studios (-2.22%), non-doorman one-bedrooms (-3.70%), doorman one-bedrooms (-0.64%), non-doorman two-bedrooms (-0.97%), doorman two-bedrooms (-2.69%)

Upper East Side— Non-doorman studios (-3.57%), doorman studios (-0.49%), non-doorman one-bedrooms (-1.34%), doorman one-bedrooms (-0.73%)

Midtown West— Non-doorman studios (-1.80%), non-doorman one-bedrooms (-1.05%), non-doorman two-bedrooms (-9.00%)

Midtown East— Non-doorman studios (-5.50%), doorman studios (-2.08%), non-doorman one-bedrooms (-3.28%), non-doorman two-bedrooms (-3.37%)

Murray Hill— Non-doorman studios (-0.60%), non-doorman one-bedrooms (-4.90%), doorman one-bedrooms (-0.67%), doorman two-bedrooms (-0.60%)

Chelsea— Doorman one-bedrooms (-1.15%), non-doorman two-bedrooms (-2.85%), doorman two-bedrooms (-2.37%)

Gramercy Park— Doorman studios (-4.26%), doorman two-bedrooms (-1.08%)

Greenwich Village— Non-doorman studios (-2.26%), doorman studios (-0.78%), non-doorman one-bedrooms (-0.56%), non-doorman two-bedrooms (-2.35%), doorman two-bedrooms (-4.94%)

East Village— Non-doorman studios (-5.20%), non-doorman one-bedrooms (-3.07%), non-doorman two-bedrooms (-2.73%), doorman two-bedrooms (-2.91%)

SoHo— Non-doorman studios (-9.61%)

Lower East Side— Non-doorman studios (-3.34%), doorman studios (-6.76%), doorman one-bedrooms (-10.17%), doorman two-bedrooms (-14.43%)

TriBeCa— Doorman one-bedrooms (-1.75%)

Financial District— Non-doorman one-bedrooms (-5.77%), doorman one-bedrooms (-1.90%), non-doorman two-bedrooms (-6.35%)

Battery Park City— Doorman studios (-8.46%)

Where Prices Increased:

Harlem— Doorman studios (0.87%), doorman two-bedrooms (2.31%)

Upper West Side— Doorman studios (1.77%)

Upper East Side— Non-doorman two-bedrooms (5.13%), doorman two-bedrooms (0.40%)

Midtown West— Doorman studios (1.58%), doorman one-bedrooms (0.02%), doorman two-bedrooms (4.97%)

Midtown East— Doorman one-bedrooms (1.75%), doorman two-bedrooms (1.74%)

Murray Hill— Doorman studios (0.49%), non-doorman two-bedrooms (0.43%)

Chelsea— Non-doorman studios (1.12%), doorman studios (0.71%), non-doorman one-bedrooms (2.95%)

Gramercy Park— Non-doorman studios (2.02%), non-doorman one-bedrooms (0.85%), doorman one-bedrooms (0.54%), non-doorman two-bedrooms (3.09%)

Greenwich Village— Doorman one-bedrooms (9.22%)

East Village— Doorman studios (0.37%), doorman one-bedrooms (8.84%)

SoHo— Doorman studios (7.14%), non-doorman one-bedrooms (3.64%), doorman one-bedrooms (8.04%), non-doorman two-bedrooms (7.21%), doorman two-bedrooms (8.18%)

Lower East Side— Non-doorman one-bedrooms (1.86%), non-doorman two-bedrooms (2.56%)

TriBeCa— Non-doorman studios (11.93%), doorman studios (4.39%), non-doorman one-bedrooms (7.03%), non-doorman two-bedrooms (7.16%), doorman two-bedrooms (1.00%)

Financial District— Non-doorman studios (2.62%), doorman studios (1.39%), doorman two-bedrooms (1.69%)

Battery Park City— Doorman one-bedrooms (0.81%), doorman two-bedrooms (0.47%)

Tips for Renters:

• LES = Lot of Extras & Space. The Lower East Side continues to be the best location for renters looking for service and space. Doorman one and two-beds dropped 10.17% and 14.43% respectively this month to $2,474 and $3,908 – the lowest price point TDG/The Real Estate Group NY has seen for doorman one-bedroom units since data recording began in 2007 and near the lowest for two-bedroom units.
• SoHo drops down. Many renters have chosen to take advantage of the current market and upgrade their location and or units and this month brings good news for those renters looking for a SoHo address. Non-doorman studios fell 9.61% this month to $2,087, the lowest price TDG/The Real Estate Group NY has recorded for these units. So for those in the market, it might be time to re-examine that wish list as more and more areas become attainable.
• Hidden gems in the village. The East Village has maintained relatively stable asking rents during the past 13 months, but the numbers may be hiding some of the city’s best hidden gems. The area known as the East Village is one of the best examples of the dichotomy of Manhattan’s real estate. While the larger rental buildings and newer conversions, especially those located near train stops, continue to fetch high prices, many of the smaller buildings located in areas farther from transportation have seen large decreases in their asking rents. Bargain shoppers should keep their eyes peeled for these units.

Mean Manhattan Rental Prices

The Mean Rental Price graphs illustrate average monthly rents for studios, one–bedrooms and two–bedrooms in doorman and non–doorman buildings in Manhattan for the month of November 2009. Graphs tracking citywide and neighborhood price changes over a rolling 13-month period follow.

Manhattan Price Trends

Neighborhood Price Trends

Upper West Side

Upper East Side

Midtown West

Midtown East

Murray Hill

Chelsea

Gramercy Park

Greenwich Village

East Village

SoHo

Lower East Side

TriBeCa

Financial District

Battery Park City

Harlem

The Report Explained

The Manhattan Rental Market Report is the only report that compares fluctuation in the city’s rental data on a monthly basis. It is an essential tool for potential renters seeking transparency in the NYC apartment market and a benchmark for landlords to efficiently and fairly adjust individual property rents in Manhattan.

The Manhattan Rental Market Report is based on data cross-sectioned from over 10,000 currently available listings located below 155th Street and priced under $10,000, with ultra-luxury property omitted to obtain a true monthly rental average. Our data is aggregated from the The Real Estate Group NY proprietary database and sampled from a specific mid-month point to record current rental rates offered by landlords during that particular month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), OnLine Residential (OLR.com) and R.O.L.E.X. (Real Plus).

Contact us now: 212.475.9000

Note: All market data is collected and compiled by The Real Estate Group NY’s marketing department and is overseen by C.E.O. Daniel Baum. The information presented here are intended for instructive purposes only and has been gathered from sources deemed reliable, though it may be subject to errors, omissions, changes or withdrawal without notice.

If you would like to republish this report on the web, please be sure to source it as the “Manhattan Rental Market Report” with a link back to its original location (http://www.tregny.com/manhattan_rental_market_report).