Profimex Market Review Update – November 3, 2020
NYC Apartment Rents Slip Back to 2011 Levels
For the first time since 2011, New York City rents have dropped below $3,000. The new median rental rate, according to StreetEasy is now $2,990. On the firm’s website, around half the properties listed are marketed at a discount. Next to Manhattan, also Brooklyn and Queens saw a decrease in rental rates. The decreasing rental rates are also affecting investment sales, which have decreased 17%, according to a recent report from Real Estate Board of New York.
Multi-Tenant Retail Properties Face Risk
According to a recent market report on the retail sector, published by Marcus & Millichap, single-tenant retailers are outperforming multi-tenant retailers, which are in severe trouble. The single-tenant locations, such as quick-service restaurants with a drive-thru, or essential retailers are performing not too bad in the pandemic with vacancy level having increased by only 20 basis points. Vacancies of multi-tenant properties on the other hand, such as those of neighborhood centers and malls have increased by more than 100 basis points.