MNS Real Impact Real Estate

Introduction

According to the most recent Manhattan Rental Report, overall rents in Manhattan have remained comparatively stable.

The average Manhattan rent increased by a measly 23 basis points - from $3,791 in March to $3,800 during April. Tracking 15 total neighborhoods within Manhattan, precisely 1/3 experienced negative rental growth from the previous month; including Gramercy (-0.18%), Midtown West (-0.83%), Murray Hill (-0.25%), SoHo (-2.59%), and TriBeCa (-0.55%). As mentioned in the March 2013 Manhattan Rental Report, Midtown West has experienced significant growth from the beginning of the year. As all good things eventually come to an end, the -0.83% decline in April finally concluded its positive momentum.

Rental averages in April failed to provide any trends within the unit sectors analyzed in the report. As doorman studios and doorman one-bedroom units both rose by 0.97% and 0.37% respectively, doorman two-bedroom units decreased by -0.07%. Completely reversible, non-doorman studios and non-doorman one-bedroom units decreased by -0.49% and -0.91% respectively, and two-bedroom non-doorman units increased by 1.03%. Overall, units within buildings offering doorman services increased by 0.11% while units without doorman services increased by 0.52%.

A Quick Look

Where we are from 2012: Overall rent averages have increased by 5.00% from April 2012 - from $3,619 to $3,800. Greenwich Village (9.9%), TriBeCa (8.7%), Harlem (8.3%), and the Upper East Side (7.7%) represent the yearly leaders on the island. More specifically, non-doorman studios in Midtown East and non-doorman two-bedroom units in SoHo have appreciated 26.3% and 23.8% respectively. However, Murray Hill represents the only neighborhood with a negative growth of 1.8% during the previous 12 months.

Greatest Changes Since March

• Non-doorman studios - Studios - Midtown East: Up 3.70% ($89)
• Non-doorman studios - 1-Beds – Upper West Side: Up 8.5% ($217)
• Non-doorman studios - 2-Beds – Greenwich Village: Up 7.7% ($357)
• Doorman studios - Studios - East Village: Up 7.3% ($208)
• Doorman studios - 1-Beds – Harlem: Up 4.0% ($94)
• Doorman studios - 2-Beds – Greenwich Village: Up 3.9% ($192)

Where Prices Decreased

Chelsea:

Non-Doorman Studios -2.40%, Doorman Studios -1.90%, Doorman Two-Bedroom -0.20%

East Village:

Non-Doorman Studios -2.50%, Non-Doorman Two-Bedroom -3.70%, Doorman Two-Bedroom -2.90%

Financial District:

Doorman Studios -1.30%

Gramercy:

Non-Doorman Studios -2.50%, Doorman Studios -0.70%, Non-Doorman Two-Bedroom -1.80%, Doorman Two-Bedroom -1.60%

Greenwich Village:

Non-Doorman One-Bedroom -0.20%, Doorman One-Bedroom -0.30%

Harlem:

Non-Doorman Studio -1.90%, Doorman Two-Bedroom -1.30%

Lower East Side:

Non-Doorman Studios -2.60%, Doorman Two-Bedroom -2.10%

Midtown East:

Non-Doorman One-Bedroom -3.40%, Doorman One-Bedroom -1.10%, Doorman Two-Bedroom -2.30%

Midtown West:

Non-Doorman Studios -0.40%, Doorman Studios -2.30%, Non-Doorman One-Bedroom -2.50%, Non-Doorman Two-Bedroom -4.20%

Murray Hill:

Non-Doorman One-Bedroom -1.50%, Doorman One-Bedroom -1.60%, Non-Doorman Two-Bedroom -2.10%

SoHo:

Non-Doorman Studios -2.20%, Doorman Studios -1.40%, Non-Doorman One-Bedroom -1.90%, Doorman One-Bedroom -5.70%, Non-Doorman Two-Bedroom -0.10%, Doorman Two-Bedroom -3.10%

Tribeca:

Non-Doorman Studios -2.30%, Doorman Studios -1.80%, Non-Doorman One-Bedroom -2.80%, Doorman One-Bedroom -2.70%, Doorman Two-Bedroom -0.40%

Upper East Side:

Non-Doorman Two-Bedroom -1.50%

Tips for Renters

SoHo: Although limited inventory, the exclusive clientele capable of affording the rental rates in Soho should experience discounts as the average monthly rate decreased by 2.59% - representing an overall discount of $128. In addition, all six unit sectors analyzed in the report decreased from the previous month. Despite the rental decreases, the Average Joe would still not consider (or afford) signing a leasing in this particular neighborhood. Sorry!