NY Times: A Month Free? Rents Are Falling Fast

[marmar]

A Month Free? Rents Are Falling Fast

By ELIZABETH A. HARRIS
Published: January 30, 2009


IN this painful economic climate of layoffs and shrinking investments, there is a sliver of positive news: it’s a good time to be a renter in New York City. Prices are falling, primarily in Manhattan, and concessions like a month of free rent are widespread.

Although it is notoriously difficult to quantify the state of the rental market, rents fell in almost every sector of the Manhattan market last year, according to the Real Estate Group, a New York brokerage. The steepest drop was in one-bedrooms, down 5.7 percent in buildings with doormen and 6.53 percent in buildings without. The only category that rose: rents for two-bedroom apartments in doorman buildings, up just a bit, by 0.61 percent. But these numbers, like most available data, represent asking rents rather than the final price. Anecdotal evidence suggests that some people are negotiating rents as much as 20 percent lower than the original prices asked by landlords. These figures also leave out incentives, like a month of free rent or a landlord’s paying the broker fee, which can add up to real savings.

Fritz Frigan, executive director of sales and leasing at Halstead Property estimates that when these incentives are considered, rents are actually down some 10 percent to 15 percent since the market peak in mid-2007.

“In that really strong market,” Mr. Frigan said, “landlords didn’t have to do anything.” In 2008, that was no longer the case. ........(more)

The complete piece is at: http://www.nytimes.com/2009/02/01/realestate/01cov.html?em

[fishnfla]

1. shit we just negotiated a lease for our new office, get this

14 months free rent( 7 year lease),bargain rate per square foot, paint the building, pave the parking lot and all kinds of throw-ins

Its the best time to open a business in that regard. every contractor is aching for work too

getting a loan is a nother story

[kestrel91316]

2. I wish MY rent would fall. $1275 for a 1-BR (WITH a small balcony).

To their credit, my landlords only raised rent $20 on me last fall.

DROPPING rents? NEVER gonna happen in Los Angeles. They just won't skyrocket like they have the past 8-10 years.

[marmar]

3. I think it'll happen there too.....California isn't exactly the picture of economic health right now

n/t

[smokey nj]

4. Even with the drops, NYC rents are unaffordable for most people.

My husband's friend just moved back to Manhattan he negotiated the rent on his one-bedroom down to the bargain price of $2,950/month. I think they were asking $3,100 or $3,200.