As we near the end of 2017, the old adage “the more things change, the more they stay the same” has some added meaning. Towards the end of 2016, a slew of luxury and high-end residences remained unoccupied as many potential buyers and renters presumably were ambivalent about making changes because of the uncertainty following the impending change of administrations. With that, landlords began offering a number of concessions in the hopes of attracting renters.
Fast forward to the end of 2017, and it appears that a year-long trend will continue. According to a recent globest.com report, the market share of landlord concessions in November (including free rent) rose to 29.6 percent, which was the highest since January 2017. In Queens, nearly half of new leases established (44.6 percent) came with landlord concessions.
This ostensibly means that in 2018, landlords will continue to offer concessions or see vacancies rise.
Indeed, this may also mark the nature of a seasonal trend, as landlords do not want to have properties vacant between November and March, the traditional winter in New York. But it also suggests that the market for luxury rentals remains weaker, particularly in Manhattan. The concessions in Queens suggest that an oversaturation is still unresolved, which bodes well for prospective renters.
The market still calls for renters and buyers alike to rely on experienced legal counsel as they embark on their search for homes. An experienced real estate attorney can help renters avoid legal pitfalls and help them make informed decisions.
The preceding is not legal advice.