Expect More High-end New Developments and More Landlord Concessions

Jonathan Miller, president and CEO of Miller Samuel, Inc.

NEW YORK CITY—In November 2017, landlord concessions including paying broker commissions and offering free rent were the unmistakeable trend. In Manhattan, the market share of landlord concessions rose to 29.6%, the second highest on record, topped only in January 2017 when it hit 30.9%.

In Brooklyn, 18.6% of new leases came with concessions, and in Queens the figure was 44.5%. Elliman has tracked this data since October 2010.

Jonathan Miller, president and CEO of Miller Samuel, a real estate appraisal and consulting firm, prepared Douglas Elliman’s “Manhattan, Brooklyn & Queens Rentals November 2017″ report. He tells GlobeSt.com, “With concessions high but stable, landlords will have to be more willing to reduce their rents or vacancies will rise.”

Hal Gavzie, executive manager of leasing at Elliman, has overseen more than 10,000 transactions throughout his career. He says owner concessions are very common from November through March, as owners want to make sure their apartments are not vacant through the winter.