When do 2 month free deals disappear?

Some bldg owners seem to have understood earlier than others what was happening. I've watched a few who were clueless and churned their tenants while overpricing. They are still at 2 to 4 months "free" and vacancy as high as ever. Those who proactively adjusted to the market have better occupancy today and more ability to set prices.

I'm looking at Manhattan luxury, $5k and above stuff. May be different in BK or non-luxury.

George, Please post a couple of examples.

800 Fifth, 19 Dutch, 8 Spruce, and Prism come to mind. Giant buildings with high vacancies and lots of "free" rent still.

Ah. In the only listing I checked on 800 Fifth, they increased the rent from 2017 and then discounted as if people are stupid.

https://streeteasy.com/building/800-5-avenue-new_york/31b

800 Fifth is playing all sorts of games since they hired Corcoran to market the place, which shows Corcoran's strong ethical culture, right? They're actually renting maybe one a month. I follow it just bc it's Spitzer, who at least and the decency to resign, unlike Cuomo.

c line cc now.

But at least the apartment is what is it is and the renter can decide the price for themselves. They are just playing with the historical info - so not a big deal vs illegal bedrooms etc.

George, 8 Spruce is 1 month to 3 month free depending on the apartment? Was it like that 4 months back as well which was presumably the short term bottom?

At Prism, where they disclose the date of the prior tenant's move-out, the multiple months tend to come for apartments that have been lingering or are already vacant. No need to give a concession when tenants are still in the unit. Prism maxed out at 3 months but also took down asking/headline rents. Now they seem to be maxing out at 2 months. Ditto for some other buildings. And you never know what you can negotiate until you try.

Corcoran at 800 Fifth is also not showing all the inventory. They upload a batch, let it sit, then mark them all as rented, then upload a new batch. Might not be illegal, but it's the sort of shady practice that doesn't reflect well on rental brokers.

Prism is kind of poor location but 800 fifth is a good benchmark for a stabilized established building.

I think of Prism and 800 Fifth as being opposite buildings for opposite reasons. For young people, Prism's location is great. Not quite as cool as the Flatiron area but very close. Near midtown but definitely not midtown. Appears to be a high-amenity building with small apartments and rental-quality finishes. There's a Whole Foods going in next door, and the Royalton is across the street.

800 Fifth is an old man's building with big apartments and essentially zero amenities. It's a lot closer to midtown and lacks any sort of neighborhood vibe. The Knickerbocker Club is next door, which I suppose is cool for some people, I don't know who. I suppose that for people of a certain age who don't want to tie themselves up in a coop, this is what they see as prime living.

I haven't been in either building so I don't know them perfectly, but to me they are bellweathers of how two different generations in the $5-10K/month range look at rental real estate.