Manhattan Apartment Rents Dropped 11% Last Month
According to the appraiser Miller Samuel and broker Douglas Elliman, the median rental rate in Manhattan is now $3,036, a 11% decline year-over-year. The price reduction for studio apartments is even greater with 13%, down to a median price of $2,350. However, high-end apartments were hit less, a price decline of only 3%. These price movements show the weakening demand for certain apartment types.
The Manhattan vacancy rate is currently 5.75% and according the Bisnow, 55% of all leases today include some sort of concession, 21% more than last year.
To Dispose Of Real Estate In Coming Months
A recent survey of 250 technology firms by Savills shows that 82% anticipate that they need less space in the coming 12 to 18 months and that 55% plan to dispose some of their space. This trend can already be witnessed by the increasing subleases coming to the market. Zev Holzman, Savills Executive Managing Director, argues that “these subleases increase the overall availability of office space on the market and will likely lead to a drop in rents.”