When one thinks of the benefits of living in a luxury apartment building, one of those benefits is inevitably having a doorman. However, we at Luxury Rentals Manhattan have touted the benefits of not having a doorman in Manhattan -- and it seems the NYC real estate world has begun to agree with us. In the past two years, the desire for Manhattan luxury rental apartments in doorman buildings has significantly decreased. Perhaps the most obvious reason is the fact that New York City has been experiencing an historic economic downturn, therefore forcing many people to choose other, less expensive options. But this is not the only reason. The changing demographics within NYC, namely the increase of labor within the technological and creative industries who have different tastes have also played their part, causing a perfect storm of events leading to this dramatic decline in the desire for Manhattan luxury apartments in doorman buildings and possibly the beginning of a new trend within the NYC real estate market.
According to statistics compiled by real estate consulting firm Nancy Packes Inc., between 2010 and the mid-year point in 2011, rents in doorman buildings have decreased 36 percent for studios, 21 percent for one-bedrooms and 18 percent for two-bedrooms. This is due in large part to the fact that though wages remain restricted to their recession levels, rents have still continued to increase. Prospective tenants are now being forced to make difficult decisions, including the choice to forgo the luxury of having a doorman in exchange for their continued ability to live in the borough of Manhattan. However, even with this new trend, which we at Luxury Rentals Manhattan reported on as early as last May, in the higher end apartments, namely four bedroom or more luxury rentals, prospective residents still seem to want a doorman, with the number of renters increasing by 34 percent. But again, the economic uncertainty hovering over the city and even the nation has played its part in this as well, in that those who are seeking four bedroom or more luxury rentals are the same folks who several years ago would have been searching through NYC real estate listings for properties to purchase. In essence, the fate of doorman buildings appears to be tied to whatever the current economic climate happens to be at a given time, both negatively and positively.
There are a couple of other reasons, aside from finances, that this phenomenon is taking root throughout NYC. Increased interest in Manhattan luxury rental apartments by those in various technological and creative fields are playing their parts as well. These people see the doorman as not only an unnecessary amenity, but actually tend to prefer pre-war buildings with exposed brick and a Bohemian atmosphere, and consider the more modern attended buildings to be “passe”. Another factor affecting this decrease is the decline in crime in NYC over the past few decades. People no longer feel as unsafe as they once did, especially in areas like Midtown West, the Upper West Side and Clinton, and as a result are more than happy to either have a “virtual doorman”, or none at all. In the end, this trend appears to be firmly taking hold within the world of Manhattan luxury real estate. We at Luxury Rentals Manhattan say, Finally.
