The recent surge of rental leases in New York's Manhattan and Brooklyn boroughs (January was the 4th consecutive month of net gains in rental lease signings) is a welcome sign to the Big Apple, after the unpleasant experience the real estate market went through in 2020 as a result of the pandemic driving people out to less metropolitan areas. However, with the high supply of listings, the prices have decreased considerably and incentives for long-term deals are attractive.
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"As employees working remotely and see little reason to live close to the office, Manhattan apartment landlords are providing the biggest move-in concessions on record in an effort to fill empty units during the pandemic," says Elliot Bogod of Broadway Realty. "Rents tumbled 19% in January as listings continued to pile up. Special incentives and freebies averaged 2-3 months, most in over the last decade, which have helped somewhat. Many schools, colleges, and cultural attractions are also still shuttered. New lease signings jumped, but revenue for landlords is still slipping. With the value of concessions subtracted, the median rent in Manhattan plunged substantially."
Eugenia Foxworth of Foxworth Realty adds, "There are several thousand rental apartments available in Manhattan. Many people do not want to live in high rises since COVID-19. The reason that there has been an upsurge in renting in luxury full-service buildings is due to the lower rental cost. Many people are working remotely, have lost their positions, and are relocating to the suburbs. For example, on Central Park South, one apartment in particular was asking $15,000 per month and now it is renting for $,9999. The landlords are offering from one to three months free on one to two-year leases. Some buildings are not increasing the rent when leases are expiring. It is advantageous for renters during this pandemic."
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