Profimex Market Review Update – September 7, 2020
Landlords Increase Apartment Concessions To Draw In Tenants
A new study by Zillow found in order to incentivize potential and current tenants, many multifamily operators are offering a higher amount of concessions instead of lowering rental rates. The study from Zillow showed that about 30% of rental listings on the service featured concessions, compared to about 16% of rental listings in February 2020 and 12.5% in July of 2019. Those concessions range anywhere from a free month of rent, free access to a parking space and/or even a gift card. About 90% of the concessions were focused on rental concessions, primarily one-month of free rent. Additionally, the survey found that these concessions were more likely to occur for multifamily properties in urban areas. “Concessions can often be a leading indicator of a coming price drop in that landlords will often offer them first, before reducing rent. If owners feel concessions are no longer moving the needle, they’ll reduce prices,” Zillow Group economist Joshua Clark wrote. “Many landlords prefer to offer a concession rather than cut rent and set a precedent that could linger when the market picks back up.”
SURVEY: 63% Of The Empire State’s Restaurants Could Be Gone ‘In A New York Minute’ By 2021
According to a new survey conducted by the New York State Restaurant Association over 63% of the 1,024 restaurants in NY are expected to close by the end of 2020. Over half of the restaurants are expected to close by the beginning of November this year. “Without further assistance, the restaurant industry as we know it could be gone in a New York minute,” NYSRA President and CEO Melissa Fleischut said in a release. “These recent survey results illustrate just how dire the financial situation has become for most restaurants, and it shows how critical it is that elected officials understand the urgency of the situation.” In addition to restaurants in the New York, national restaurant trade associations have been lobbying the federal government for restaurant specific relief programs.