The newest reports from the New York City property development inventory are in, and there are items of interest across the board. Whether you are in the market to sell, buy, rent, or lease; whether it is an office, a condo, an apartment, a single family home, or an entire building, in Manhattan or Brooklyn, here is the news you need to know.
In Brooklyn, new development inventory has just seen half of its stock sold already, with only just over 500 apartments remaining for sale. This comes in as the dollar volume of multifamily homes has surpassed 1.7 billion dollars in the month of September.
For Manhattan news, one of the leading firms in New York City real estate market, Town Residential, reports that sales across Manhattan are up. Town Residential is composed of agents with decades of prior real estate experience, and they have all seen first hand what the trends we are seeing now will mean down the line. The absorption rate in Manhattan dropped to 4.1 months in November, as Midtown and Midtown East paced the market in this decline. These two neighboring neighborhoods saw the most year-to-year decline in new development sales.
Seventy luxury contracts were signed in Manhattan during the first half of the month (priced $4 million and higher), the second best November open in a decade. Total multifamily unit sales grossed over $1.7 billion which is an increase of 97% in volume from the August numbers.
Midtown rents on 5th Avenue in the 40s are increasing, with asking rents up almost 15 percent this quarter. Power players in the market, like luxury residential and office specialists Town Residential, are advising clients to act accordingly in this market which is seeing strong growth as rents increase to over twelve thousand dollars a square foot.
In total, almost twenty-two million square feet of designated office space was signed into lease over the first three quarters of 2015. This is an important development for renters as well, as the increase in total units occupied in a building signals owners to offer more total services.
Thus the report that the third quarter vacancy rate for Manhattan remained hovering just under 9 percent means the market is strong, with no wild jumps in occupancy, despite the rise of the average rent up to over $71 per square foot.