The Rental Report
Real NumbeRS Real time Real people
May 2012
Real^Life
As predicted, the month of May has followed the pattern set by Aprils launch of the summer rental season, with prospective tenants having fewer choices as the vacancy rate is at the lowest in many years, while landlords are reporting rents are back up to or above pre-2008 levels. The demand for quality apartments in all price ranges is very strong. Tenants are struggling to find apartments and are being forced to pay as much as 30 percent more than two years ago, if they re-entered the market after a two- or three-year absence. My conversations with landlords typically lead off with them asking: What can I get now for this unit, as I hear the market is much stronger than last year? This has led to larger rent increases, as the tenants have little choice if they want to live in Manhattan, in almost any neighborhood. Those up for lease renewals are paying much more to stay in their apartments, as landlords who pay as much as 50% of their rental income in NYC real estate taxes are trying to recoup while they can, the losses they incurred over the past four years from paying broker commissions and granting free months at reduced rents. This combination of factors is akin to a short squeeze on Wall Street, and is creating a rental bubble that is sure to be short lived as people just cannot afford many of the rents being asked by owners. Marc Lewis
Chairman of A.C.Lawrence & Company, Inc.
www.aclawrence.com
228 East 45th Street, 9th Floor, NY, NY 10017
212.989.0880
May 2012 Report
availability by buildiNg type availability by apaRtmeNt Size
3 bed+ 5% 1 bed 48% Studio 23% 2 bed 24%
Doorman 58%
Walk-Up 23% Elevator 19%
Manhattan May Average April Average % Change $3,419 $3,324 2.9%
Doorman Studio May Average April Average % Change $2,505 $2,494 0.4%
Elevator
Walk-Up
Average
$2,079 $2,058 1.0%
$1,882 $1,845 2.0%
$2,278 $2,243 1.6%
1-Bedroom May Average April Average % Change $3,537 $3,428 3.2% 2-Bedroom May Average April Average % Change $5,368 $5,283 1.6% 3-Bedroom May Average April Average % Change $6,980 $6,833 2.2% $5,492 $5,445 0.9% $4,570 $4,579 -0.2% $5,940 $5,879 1.0% $3,548 $3,513 1.0% $2,947 $2,959 -0.4% $4,406 $4,360 1.1% $2,536 $2,443 3.8% $2,207 $2,157 2.3% $3,304 $3,199 3.3%
www.aclawrence.com
228 East 45th Street, 9th Floor, NY, NY 10017
212.989.0880
May 2012 Manhattan Neighborhood Averages
Doorman Battery Park City Chelsea East Village Financial District Gramercy/Flatiron Greenwich Village Harlem Inwood/Wash Hts Lower East Side Midtown East Midtown West Morningside Hts Murray Hill/Kips Bay Soho/Tribeca Upper East Side Upper West Side Battery Park City Chelsea East Village Financial District Gramercy/Flatiron Greenwich Village Harlem Inwood/Wash Hts Lower East Side Midtown East Midtown West Morningside Hts Murray Hill/Kips Bay Soho/Tribeca Upper East Side Upper West Side
*Sample too small to report
Elevator Studio * $2,805 $2,282 $2,166 $2,465 $2,728 $1,198 $1,308 $2,080 $2,290 $2,515 $1,640 $2,276 $2,779 $1,906 $2,000 2-Bedroom * $5,423 $4,255 $5,039 $5,219 $4,854 $2,359 $2,038 $4,188 $4,102 $4,604 $2,991 $4,194 $5,987 $4,036 $4,238
Walk-Up * $2,091 $1,898 $2,052 $2,094 $2,464 $1,327 $1,069 $1,826 $1,913 $2,063 $1,546 $1,783 $2,622 $1,699 $1,743 * $4,359 $3,278 $3,257 $3,991 $4,062 $1,798 $1,550 $3,075 $3,123 $3,691 $2,420 $3,793 $4,417 $2,786 $3,498
Doorman $3,405 $4,051 $3,776 $3,727 $4,018 $4,096 $2,224 $1,907 $4,047 $3,668 $3,950 $2,869 $3,541 $4,653 $3,450 $3,495 $6,393 $ 7,314 $6,467 $6,817 $7,142 $7,343 $3,943 $3,874 $5,882 $6,046 $6,312 $4,817 $6,053 $7,300 $6,076 $6,418
Elevator 1-Bedroom * $3,501 $2,927 $3,276 $3,261 $3,911 $1,774 $1,420 $2,666 $2,725 $3,022 $2,221 $2,814 $4,041 $2,418 $2,804 3-Bedroom * $6,146 $5,103 $6,432 $6,175 $6,669 $2,899 $2,579 $4,535 $5,155 $5,631 $3,940 $4,706 $8,055 $4,860 $5,119
Walk-Up * $2,931 $1,885 $2,820 $2,568 $2,871 $1,456 $1,271 $2,260 $2,223 $2,415 $1,715 $2,247 $3,080 $1,990 $2,059 * $5,480 $4,540 * $5,207 $5,303 $2,123 $2,052 $3,812 $4,081 $4,964 $3,673 $4,017 $5,702 $4,118 $4,694
$2,508 $2,867 $2,738 $2,796 $2,840 $2,852 $1,460 $1,624 $2,467 $2,621 $2,897 $1,750 $2,604 $3,494 $2,558 $2,676 $5,559 $6,123 $5,376 $5,020 $6,185 $6,211 $2,967 $2,400 $4,765 $5,272 $5,304 $3,974 $5,327 $6,987 $4,831 $5,493
www.aclawrence.com
228 East 45th Street, 9th Floor, NY, NY 10017
212.989.0880
Making the Move
a . C . l aw R e N C e a g e N t S R e C o u N t: w h at t h e y w a N t e d . w h e R e t h e y l a N d e d .
May 2012
SamaNtha lopez-edwaRdS:
Client Challenge #1 GOAL: 2-bedroom in Midtown West, $2,400 maximum rent CHALLENGE: find not only the apartment, in the clients current neighborhood, but also find her a roommate RESULT: 2-bedroom directly across the street from the clients outgoing apartment & a new roommate to share the rent Client Challenge #2 Two women have one week to find a two-bedroom and have been unsuccessful with prior agents. GOAL: 2-bedroom in the East Village or Midtown West with spacious bedrooms & a huge living room CHALLENGE: Space, location & restricted timeframe RESULT: The perfect Midtown West two-bedroom, within an hour of searching.
SeaN maSCali:
Client Challenge #4 My client had less than one week to move out of his current West Village apartment and find a new apartment. He wanted an apartment extremely close to his office in Midtown East because his job requires him to see clients at all hours of the day and evening. GOAL: Luxury building near clients office in Midtown East, maximum of $3,500 CHALLENGE: A one-bedroom that could accommodate the clients king-size bed and within a three-block radius of his office RESULT: One-bedroom for $3,350 ($150 under budget), one block from his office Client Challenge #5 My client, a college student currently living in a dorm in Manhattan, wanted a doorman building with an elevator that was close to her school. GOAL: One-bedroom in Midtown West that could be shared between the client and her roommate, maximum $2,400 CHALLENGE: As an international student, my client did not have a U.S.-based guarantor, which is something many landlords require in order to lease an apartment. RESULT: One-bedroom with doorman and elevator in Midtown West for $2,195 ($205 under budget). By paying additional security, the client was approved for the apartment even without a U.S.-based guarantor.
elizabeth tayloR:
Client Challenge #3 GOAL: My client wanted to stay in a budget of $2,000 for a studio in the favorite neighborhood of the West 70s. The budget was tight, but I knew we could make it work. CHALLENGE: Studio in the West 60s and 70s RESULT: We researched and after looking at listings four times a day, found an amazing apartment on 75th Street that was $2,000. When this particular alcove studio came onto the market, we were there right away putting in an application. The client was thrilled and is excited to be moving in June 1.
RENTAL TIP
As noted in last months market tip having your paperwork ready and immediately available can be the difference between getting the apartment you have chosen and losing it. There is nothing more frustrating for an agent and a Client to work so hard to find you your new home and after all the work to hear my tax return and 1099 is at home packed in boxes in Virginia and I cannot get in touch with my accountant. This delay can and will cost you the apartment as the market is very busy now and Landlords will not wait and make us go on to the next qualified client who came prepared with all of their paperwork.
Purpose The purpose of this report is to identify and highlight market trends based not only on our statistical data gathering but also based on empirical data collected by our market professionals who interact with clients and landlords on a daily basis. Source ACL tracks over100,000 apartments. Data for this report is based on available apartments per our proprietary rental listings database as well as data from the REBNY Listing Service (RLS). Prices are based on actual rents, not net effective rents. Apartments priced above $7,500 are not included in this report, in order to come up with a true average. Disclaimer The information provided in this report is for informational purposes only. All data is from sources deemed reliable, but no warranty or representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, or withdrawal without notice.
www.aclawrence.com
228 East 45th Street, 9th Floor, NY, NY 10017
212.989.0880
