New York City Luxury Rental Blog Archives for December 2011

Developers Explain Why the LES is a Haven for Rentals

In Manhattan, we tend to think about real estate the way George Orwell thought about communism: all neighborhoods are trendy; some neighborhoods are trendier than others. The Lower East Side is the kind of neighborhood kids from all over dream of one day moving to and becoming artists. Though its as full of high-end retail and upscale restaurants as any other part of the city, it retains a bohemian flair that makes it destination number one for the young, aspiring artist crowd. This can tell us something about real estate trends in the area. Developers say the demographics of the Lower East Side mean that new buildings are far more likely to be rentals than condos.

MiMa Abandons Sales, Puts All Condos Up for Rent

MiMa tower in Midtown West now offers condos as luxury rentalsIn an unexpected twist, Related Cos. elected to switch the luxury condos in MiMa, their 63-story glass high-rise on 42nd Street and 10th Avenue in Midtown West, to luxury rentals. Related planned for over 3 years to sell the 151 units as luxury condos, all located above the 50th floor of MiMa. The 663 luxury rentals on the lower stories were always been designated as rentals, but this sudden reversal to an all-rental building rather than a mixed sales and rentals building is more telling than it appears, though not in the way we might initially assume. This is not a case of desperate landlords panicking and using the luxury rental market as a safety net. Rather, this is a calculated decision based on the strengths and weaknesses of the rental and sales markets. If Related is making a smart decision, and it certainly appears that way, then MiMa's move to rental bodes well for the luxury rental market in Manhattan.

West Chelsea Year End Wrap-Up: The High Line Effect

The High Line transformed West Chelse into a great place for luxury rentalsHow quickly we forget. 10 years ago, the High Line was a rusted artifact, a blight on West Chelsea, and a large part of the reason that West Chelsea remained underdeveloped and cheaper to rent in than Chelsea itself. West Chelsea has always been something of a separate neighborhood because of its industrial character, slightly out-of-the-way location, and cheap rents relative to the rest of Chelsea and other downtown neighborhoods. However, the High Line changed everything, and that’s not an exaggeration: Rents in West Chelsea now exceed rents in Chelsea, consequently pulling them upward and enhancing the neighborhood as a whole. In fact, rents for luxury apartments in West Chelsea have become similar to neighborhoods like SoHo and Tribeca, Manhattan's most expensive and coveted neighborhoods. Renters looking for great new luxury rentals should look to West Chelsea, because condo owners are cashing in on this sudden popularity by renting out their apartments, giving renters a unique opportunity to live in a neighborhood rich in culture and on the rise.

Where the Most Expensive Apartments in Manhattan Really Are

Living room in the Astor SuiteLast week the Astor Suite in the Plaza on 768 Fifth Avenue hit the market for $165,000 a month, officially becoming the most expensive apartment in Manhattan. The Astor Suite is a 5,087 square foot 4-bedroom 6-bathroom luxury home. Jurgen Friedrich, the owner of Esprit, bought the Midtown West residence for $25 million in 2007, and turned it around the next year at an asking price of $55 million. We wrote earlier about how more New York residents are taking up an interest in the most luxurious Manhattan rentals. Maybe Friedrich saw the article because now, after three years without a buyer, he’s put up the apartment for rent at its current superlative asking price. We all know luxury apartments for rent at places like the Plaza don’t come cheap, but this story got us wondering what some of the other highest rental prices in Manhattan were. We looked around, and found that rental inventory starts to fall off a little before $100,000, but there are a few places that can compete for the title of "most expensive in Manhattan."

Winter Market Warmer than the Weather

Manhattan New York City Winter Rental MarketThe climate in New York City this year has been erratic to say the least. From hurricane-turned-tropical-storm Irene to the existentially questionable warm autumn, the question that has been on every New Yorker’s mind is, “So, what's winter going to be like?” A careful look at the November 2011 rental market report would suggest that the only thing warmer than the weather we had are Manhattan luxury rentals. Contrary to the slump that has occurred in the winters past, the Manhattan winter rental market is looking particularly strong, if not stronger than ever this year.

Chumbo: Manhattan’s Last Low-Rent Art District?

Chumbo Chinatown Dumbo Manhattan NeighborhoodWhen it comes to nicknames, acronyms and word blends, there are no shortage of them in Manhattan real estate. Investors and developers alike often generate and promote catchy neighborhood names such as NoMad (North of Madison Park) in order to generate buzz around new construction developments and micro-neighborhoods. While long time neighborhoods such as Soho (South of Houston Street), TriBeCa (Triangle Below Canal) and FiDi (Financial District) have slowly but surely crept into our everyday vocabulary, others are just beginning to emerge and fighting to stay relevant in our (sub)consciousness. The newest addition to this trend is Chumbo in Lower Manhattan.
 

Lower East Side Ripe With Affordable Manhattan Rentals

Lower East Side New York City Manhattan Rentals

The Lower East Side in downtown Manhattan is a neighborhood that invokes different things for different people. For many New Yorkers, the neighborhood still stands as one of the most saturated immigrant and working class communities in the city. For others, the Lower East Side is the place to go if you want to indulge in all that downtown living has to offer while finding some of the best real estate bargains in Manhattan. Luxury rentals in Manhattan are in as high demand as ever, and as the extravagence of the neighborhood and building amenities increase, so do the prices. According to the New York Post, rental apartments are cheaper on the Lower East Side than in Manhattan as a whole, and many New Yorkers are willing to trade in excessive amentiies for a better deal.

The New Bastion of Manhattan Culture: NoMad

The Flatiron Building near Madison Square ParkIt seems like we’re writing about new residential development projects in Manhattan every day, but commercial developments have become something of a lost art. Commercial buildings are less lucrative financially than residential buildings, where New York City’s constantly growing population keeps them in high demand. Most developers don’t want to risk leasing space to commercial industries, so today we are happy to report on a new project to build the area north of Madison Square Park into a commercial district called NoMad.

With Chelsea and the Flatiron District to the West and South, respectively, the area surrounding Madison Park is one of the most developed places in Manhattan, filled to the brim with high-end luxury condos for sale and apartments for rent. But the NoMad area itself remains relatively empty. It was a major area for bootlegged merchandise until recently, when developers saw the potential in turning it into an upscale commercial area. To encourage development, a couple savvy property owners lowered the rent for commercial buildings. Now they’re watching eagerly as potential culture-makers start nibbling at the bait. The new Museum of Mathematics, which opens next year, just recently leased space on 26th Street, and other projects are falling in line.

November Market Report: The Holiday Season Dash

We expect the real estate marketRental market numbers decreased less than normal in November to slow down during the holiday season. Realtors plan for it. The November and December markets are often the lowest of the year, with prices shooting back up by the first quarter of the new year. But last month’s rental market report tells a different story. November rental prices were indeed down from the previous month, but by a number smaller than anyone would have guessed. And average prices in all Manhattan rental markets in November were considerably higher than they were at the same time last year. People want to rent in Manhattan, it seems, and they’re willing to pay dearly for the privilege.