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Three Cents Worth: Rental Discounts, An About Face

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[This week, Curbed graph guru Jonathan Miller?he's also a podcaster!?dives into the freewheelin' world of falling rents.]

I've presented the dollar discount off the original asking rent, or "face rent," against the number of units rented. So much has been made of landlord's protection of face rents through concessions like free rent and payment of broker commissions that the large increase in the dollar discount from original rent last fall was somewhat unexpected. Since I am not yet tracking concessions, the discounts would likely be more pronounced if they were included.

With the exception of the past year, the range in the number of rentals was very consistent over the past six years with seasonal peaks (2Q, 3Q) and troughs (4Q). However, the number of rentals fell sharply last fall, not unlike the sales market. The sharp decline in the number of rentals showed an inverse relationship with the sharp increase in discounts. Fewer rentals = larger discounts.
· Manhattan Number of Rentals v. $ Discount From Original List Price [Miller Samuel]