High end rentals affecting sales in Manhattan?

Yes - substitution possibilities always affect demand.

I think the rental option exerts more influence where the bid-ask spread on sales is wide, particularly where buyers are dissatisfied with the quality of the inventory for sale. From what I've seen, many wealthy buyers will pay a premium to own what they really want; but they won't pay a premium to own a compromise.

Remember when Jim Jones said there were no such things as luxury rentals? That was funny.

200 high end units not selling. This does not end well for you potential sellers.

I work a fair number of high-end rentals, and the problem I usually have is that the rental inventory isn't anywhere near as nice as what's available for sale. So I actually wonder how much of the bump in leases is due to there being some decent new buildings on the market (34 Leonard etc.)

Going to see 8 Spruce with a client in a couple of weeks, but would welcome any comments if anyone's been in.

ali r.
DG Neary Realty

"the problem I usually have is that the rental inventory isn't anywhere near as nice as what's available for sale. "

that is for sure changing as deeply underwater people that bought nice properties at the peak have to rent to avoid taking the hit if they were to sell. this at the same time provides a nice alternative for those that prefer to time their purchase in order to avoid catching a still falling knife.

reminds me of rockefeller renting during the 30s after selling his own home close to the peak. he rented at 740 park avenue from an ex-rich widow whose late husband bought close to the peak.

Sigh. I already did give an example, Glenwood offered the choice when I was looking a year ago, and I could have opted for it my current place. What is funny is this very concept is addressed in a law Pataki singed in 2003 modifying rent control in NYC. Funny they would have to amend a law for something that you say never happens. Funny that the rent board website discusses something you say never happens.

So one example from a year ago. I thought it happened all the time? Your glenwood apt is rent controlled? Which building? I know they have some property in the bronx.

Show the thread where I said "there are no such thing as luxury rentals"