April 20, 2018
After years of steady increase, Manhattan rents across the major property types are either declining or experiencing slower growth, Kroll Bond Rating Agency reported. Along with lowering rents, landlords are offering more generous concession packages to fill up vacant space.
The ratings agency charts the softening of local market conditions in a new report, “Slowing Rents Bite the Big Apple.” Part one of the report, covering office and retail, is now available; a follow-up will cover apartments and hotels.
Among the key data points:
• Free-rent periods and tenant allowances for office each increased by double-digits in 2017.
• The aggregate average rent for ground floor retail space is down by 18.4%.
• Lodging posted its second consecutive year of ADR declines in 2017.
• A record 49% of the new apartment leases signed in January had some sort of concession.
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