The New York real estate market and, in particular, that of Manhattan, has always accustomed us to dizzying recovery after the crisis. But the leases especially, are experiencing a scorching moment.
In January, there were 3,159 New Lease Signings in Manhattan -49.5% compared to the same period last year, dipping below the decade average as listing inventory continued to collapse as prices reached record levels.
The median rent was $3,550, up +18% from last year, while the median net rent–that is, the rent net of concessions offered by landlords–increased year-on-year by +23%, to a record rate of $3,467, the second-highest level ever for January. By concessions we mean, for example, months of discounted rent or the agent’s commission paid by the landlord, a rate that dropped to 24.6%, the lowest in four and a half years. Note that this indicator continued to be roughly the same as the same period two years ago, pre-pandemic, for the second consecutive month; an unmistakable sign of a return to standard or even higher levels than pre-coronavirus.
The Average per Square Foot Rent was $74,83, up +20% from the same period of last year, while the Average Rental Price gained almost +17% from 12 months ago at $4,570. Net effective average rent and net effective average rent per square foot reached all-time highs, and both also exceeded the same period pre-pandemic.
Other data in support of the recovery are certainly: the vacancy rate, which fell to 1.70%, down sharply from the record 11.79% last February, and the supply, down as much as -83.3% year-on-year with 4,316 properties available on the market, a record drop for the sixth consecutive month.
We conclude with another fascinating trend: the market share for annual leases, which fell to 45.9% from a record 77.6%. What does this tell us? That tenants are aiming at more extended contracts, frightened by possible price increases in the near future. If these are not signs of recovery…
Miami Has Now Become “The Most Important City in America”
Miami has become the most important city in America, FT Magazine has declared.
The city is now considered to be a “paradise of freedom,” attracting people from everywhere and of every political persuasion, the magazine wrote.
Many of the new arrivals are now attracted by the open environment in the city, in addition to the usual attractions of low taxes and good climate.
“The Miami Movement,” as mayor Francis Suarez calls it, gained momentum when Covid hit, and has grown so large that it has changed the city in a way that is more than just a migration of people. Some of the new arrivals are already contributing to the city’s art and philanthropy scene, the article said.
Businesses and restaurants are booming, and buyers continue to flock to the area, willing to pay sky-high prices.
Venture capitalist Keith Rabois, who has been a loud advocate for the city since moving here a few years ago, said Miami was like Silicon Valley in 1999.
(source: thenextmiami.com, ft.com)
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