Tuesday, October 18, 2011

Manhattan 3Q 2011 rents increase, concessions disappear

3Q 2011 average rent in Manhattan, net of concessions, increased by 6.9% to $3,491 according to the Miller Samuel Rental Market Report.

Only 5% of rentals had concessions compared to 23% a year ago.  Concessions are things like one month free rent etc provided by landlords to make a rental more appealing.

Average rent per square foot is $50.60, a 13% increase from a year ago.

Bottom line - it's now a landlord's market as tenants find rentals becoming more expensive.  This is partly driven by a tight credit market (which makes it more difficult for tenants to buy).  The vacancy rate in Manhattan is a super low 0.93%.

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