Archive for Investors
Manhattan Residential Rental Market Overview Q1 2010
Posted by: | CommentsOur Q1 Manhattan Rental Market Overview
which was released today and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.
- Average rental price was $3,812, down 8% from $4,142 in the prior year quarter, but up 0.6% from $3,789 in the prior quarter.
- Listing inventory fell 30.8% to 5,204 units in the first quarter from 7,522 in the prior year quarter, but was essentially unchanged from the 5,225 units in the prior quarter.
- Lease renewals and rising rental activity has kept inventory stable year to date.
- There were 2,663 new rentals, up 16.3% from 2,290 in the same period last year and up 8.4% from 2,456 rentals in the prior quarter.
- The average rental listing took 86 days to lease, one day longer than the 87 days seen in the in same period last year, but was 10 days slower than the 76 days on market in the fourth quarter of 2009.
Ownership Tip For Foreign Buyers of Manhattan Condos and Townhouses
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Foreign purchasers of Manhattan real estate often take title to the property through a legal entity rather than in their capacity as individuals. Some of the reasons they opt for this can be privacy issues, income tax deferral issues, gift/estate tax concerns, the need or desire to shield the foreign investor’s own assets from liabilities arising from the ownership of U.S. real estate, and whether it is expected that additional investors will acquire equity interests in the property.
It is imperative that prior to signing the contract of sale the foreign purchaser receives competent legal and international tax advice as to the proper structure to use in order to accommodate the investment.
Foreign purchasers should be cognizant of the fact that certain types of entities in which they want to take title may not be available to persons that are NOT citizens or permanent residents of the United States, such as an “S Corporation”. In using this particular entity the investor would soon discover for one, that it may not be available to them and that the income generated by the U.S. real estate would likely be subject to double taxation.
This post was taken from a tip written by Filippo Cinotti, Esq.and published in PDE Title’s Spring Newsletter. PDE Title is a sister company of Prudential Douglas Elliman Real Estate.
Q4 Manhattan Residential Rental Report
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Recently the industry has reported data on fourth quarter rentals for the Manhattan residential market. The Q4 Manhattan Rental Market Overview reported here and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.
- Average rental price declined 4.3% to $3,789 from $3,958 the same period last year but up 0.8% from $3,759 the prior quarter.
- Rental price per square foot declined 4.6% to $47.02 per square foot from $49.30 per square foot during the same period last year, and down 1.7% from $47.84 per square foot in the prior quarter.
- Median rental price declined 9.4% to $2,900 from $3,200 in the same period last year and down 1.7% from $2,950 in the prior quarter.
- Number of rentals surged 47.5% to 2,456 units from 1,665 units in the prior year quarter.
- Listing inventory fell 21.3% to 5,225 units from 6,640 units in the prior year quarter.
- Days on market were 76 days, down from 97 days this time last year.
- Listing discount was 6.5%, down from 6.9% in the same period last year.
The reports do not account for the incentives (concessions) that tenants are frequently offered in the current market, like months of free rent or waived brokers’ fees. It is worth noting that that if those factors had been taken into consideration, rents could appear considerably lower. Perhaps as high as 10% lower.
Experts remain cautiously optimistic about this year as the unemployment rate, which has a huge impact on the rental market, remains high. ”We are looking for more of the same in the first half of 2010–stable activity and pricing,” Mr. Miller said.
Jonathan Miller’s pod cast discussing the Q4 Manhattan Market Overview can be heard here.
In addition, reporting and analysis of the Q4 Rental Market Survey were consolidated on the Miller Samuel website and shown below.
01/14/2010 PR Newswire Prudential Douglas Elliman 4th Quarter 2009 Manhattan Rental Market Overview
01/14/2010 Earth Times Prudential Douglas Elliman 4th Quarter 2009 Manhattan Rental Market Overview
01/14/2010 Business Week Manhattan Apartment Rents Drop 9.4% as City Job Losses Mount
01/14/2010 Bloomberg.com Manhattan Apartment Rents Drop 9.4% as City Job Losses Mount
01/14/2010 TheStreet.com Prudential Douglas Elliman 4th Quarter 2009 Manhattan Rental Market Overview
01/14/2010 The Real Deal Manhattan rental deals up in 4Q: reports
01/14/2010 Yahoo Finance Prudential Douglas Elliman 4th Quarter 2009 Manhattan Rental Market Overview
01/14/2010 Fox Business Prudential Douglas Elliman 4th Quarter 2009 Manhattan Rental Market Overview
In addition to the Prudential Douglas Elliman report, some of the above articles refer to the Citi Habitats Q4 Market report.