The Real Estate Group made a lot of noise with its Third Quarter report, which claimed that the Manhattan rental market was cooling. Now TREGNY has released its December study of the rental market, and there's sure to be even more discussion. Asking rents prices fell by about 1%, not really that crazy, but any decline is somewhat of a big deal. The numbers were worse for the Financial District, which had a 5% price drop in rents since November. Studio and one-bedroom units in doorman buildings declined the most, at 16% and 11% respectively. Could it be that the roughly 27 billion units that have hit the FiDi market recently in newly-converted office buildings is just too much, too soon? Says TREGNY, "Though Financial District landlords commonly offer tenants incentives ranging from flat screen TVs to one month's free rent, it appears such concessions have failed to attract enough renters to fill FiDi properties." Eek.
· The Real Estate Group New York Reports [TREGNY]
· Shocker: Manhattan Rents Cooling? [Curbed]