evidence that the rental market is tanking

- I just signed a lease (and met the previous tenant).. I'm paying 3,400 vs. the previous tenant's 4,000, landlord ate the fee as well
- A friend's landlord dropped his rent by 600 preemptively at renewal time (from 4,600 to 4,000) and this is in nolita mind you

The landlord of our friend in BPC agreed to a 20% rent reduction and a month-to-month lease (from the tenant side) while agreeing on the landlord side to not throw the tenant out for 12 months and to not raise rent. This was in a professionally managed all-rental building.

-DT

http://downtowny.blogspot.com

- colleague signed lease on soho 2br for $3,500. previous tenant paid $4,600. Apt was empty for at least a couple of months, which may have helped negotiability

Here's the high end. 845 UN Plaza. Rental listings have averaged $76 sf.

Current listing at $11,900, for 2873 sf, $49 sf. Started out on 12/01/08 at $18.5k.

Seems awfully cheap, though, when you think about buying it. Size would indicate it's in the B line. The cheapest B line apartment available is 47B. If you put 20% down at 7%, you'd only pay $29,738 per month, or about $18k extra, for the joy and stability of owning.

on the lower end...Brodsky Org. dropped rent from $2500 to $2000 on a small one bedroom at 71st and columbus, doorman bldg.

julia, i saw that.

these owners aren't having the best rental year.

http://www.streeteasy.com/nyc/rental/429813-condo-270-broadway-tribeca-new-york

09/11/2007 Previously Listed in StreetEasy by Prudential Elliman at $13,900.
05/20/2008 Prudential Elliman Listing rented. Last priced at $12,350.
11/04/2008 Listed in StreetEasy by Prudential Elliman at $12,000.
11/25/2008 Price decreased by 4% to $11,500.
12/11/2008 Price decreased by 6% to $10,850.
01/12/2009 Listing is no longer available.
01/14/2009 Re-listed by Prudential Elliman.
01/15/2009 Price decreased by 9% to $9,850.
01/15/2009 Listing is no longer available.
02/19/2009 Re-listed by Prudential Elliman.
04/08/2009 Price decreased by 14% to $8,500.

aboutready: people need to follow this listing all the way down to the grave. Anyone who is willing to drop the price from $13,900 to $8,500 is willing to go wayyyyyyy down even further. This listing smells of desperation. Renters of NYC should beat this listing into submission. Let's say $4,000 a month, ok?

Actually, this go around started at only $12k, they probably thought they were pricing it appropriately for the current environment.

Yes, this does seem very desperate. I didn't do the pictorial for the UN Plaza one, but there too from $18,500 to $11,900 in a few months is rather steep.

on a less expensive note, these owners aren't having a good time either.

http://www.streeteasy.com/nyc/rental/414971-rental-49-west-96th-street-upper-west-side-new-york

09/21/2008 Listed in StreetEasy by Corcoran at $4,500.
09/25/2008 Price decreased by 4% to $4,300.
12/03/2008 Price decreased by 5% to $4,100.
01/29/2009 Price decreased by 5% to $3,900.
03/18/2009 Price decreased by 8% to $3,575.
04/15/2009 Price decreased by 2% to $3,500.
04/30/2009 Price decreased by 14% to $3,000.

A building I used to look at, The Gotham.

http://www.streeteasy.com/nyc/rental/459391-condo-170-e-87-street-carnegie-hill-new-york

02/07/2009 Listed in StreetEasy by Annie Kleinschmidt Real Estate at $6,500.
04/01/2009 Price decreased by 9% to $5,900.
04/08/2009 Price decreased by 17% to $4,900.

You could buy the same unit, W7H, for about $8100 a month, assuming 20% down.

Julia, take note of this. Not your 'hood, but this is a brand new luxury building in (far) midtown west. 650 sf one bedroom for $2500. Many similar deals in building. The Atelier rivals some of the FiDi buildings for misguided purchases. Just have a look at the sales and rental listings. I believe most of the sales are resales, as well.

http://www.streeteasy.com/nyc/rental/481088-condo-635-west-42nd-street-clinton-new-york

A friend lived in a building next door, moved out a year ago, moved back in to the exact same apt a few weeks back, paying 25% less.

aboutready...i saved the listing...my lease is up next November so maybe rentals will be even better.

Downtownster--what building in BPC??Recently or a couple months ago??Over the last 2 weeks a huge amount of people have been renting apartments in the building I live in(in BPC). Totally took the wind out of my about-to-play-hardball sails.

nyg, but what were they renting for? would you care to reveal the building so we can do some comp work? I'm feeling saucy these days.

I was apt shopping over the weekend for a rental. I saw entire buildings vacant on the upper east side because the landlord won't rent them out at a lower price. These are zombie buildings if I've ever seen them. Landlords that can't afford to rent out their properties any lower then market highs because they bought too high. Apts will sit vacant until these landlords are forced into bankruptcy.

I was also in FiDi and they are offering 4 months free so that they dont have to lower the rent on their current tenants. They tell me there is activity and there is lease signings but I don't believe them. I think they have lots of inventory that they aren't releasing to make their listings look better.

Lets see who wins this game of chicken. Personally I'm disgusted with the games. Close the bid/ask already.

From what I could see FiDi is absolute disaster for sales right now. Watch the new condos down there, I bet most of these buildings are insolvent and will be forced into bankruptcy and the current owners will have some nice assessments to cover the short fall. If you can stomach the risk, there should be some fire sales there soon.

craberry, they are hoping desperately that the summer surge in rental apps will occur. it won't and more and more are coming on as we write. almost no landlord is in the position to be able to afford significant warehousing these days. some of the biggies have at least started lowering asking prices, rockrose, related, etc. that's an enormous start psychologically, but still not in line with the market. seeing price declines in May, of any sort, is enough to make my heart soar. (but I don't have to find an apartment right now, admittedly).

Craberry - i have to agree with you.

julia, brodsky has a new listing for 1420 Third Avenue, for a one bedroom for $1650. Haven't looked up the building.

aboutready...you're the best..

wouldn't mind having you as a neighbor, though, so maybe those stuy town apartments will be in reach by then!