Rental market heating up
Published: Aug 08, 2013
New York City’s average rental rate inched past the $3,000 mark for the first time in the second quarter, according to market data reviewed by the Wall Street Journal.
Rents in the city – excluding Staten Island – rose one percent from the first quarter to $3,017, the highest in the country and nearly $2,000 more than the national average of $1,062, according to data from real estate research firm Reis.
The rental hikes stem from an extremely tight inventory. The numbers show a vacancy rate of 2 percent; the national average is 4.3 percent. On the upside, more than 20,000 units are expected to hit the market in New York City and its suburbs by 2015.
Meanwhile, in South Florida, renters have ignited a building boom.
According to McCabe Research and Consulting, there are 52 apartment complexes presently in the pipeline in the tri-county area that consists of Palm Beach, Broward and Miami-Dade, representing roughly 14,000 new units. Sources say that the foreclosure crisis and stricter lending standards by banks have flooded the rental market with former homeowners.
But many of those new renters still want the luxury and comforts of their home, which is why you'll find granite countertops, stainless steel appliances and impact windows in many of the rental units.
World Trade Center real estate developer Larry Silverstein has reached a tentative deal with advertising firm GroupM for office space at 3 World Trade Center, paving the way for construction of the 80-story Lower Manhattan skyscraper.
GroupM – a division of advertising giant WPP — will take more than 500,000 square feet at the 2.5 million-square-foot tower in a 20-year deal.
The two sides signed a term sheet last month and are expected to have a completed lease by year-end. The major deal will allow Silverstein Properties to move ahead with securing $1.3 billion in Liberty Bond financing, backed by the Port Authority, to build the tower, the third set to rise at the site of the former World Trade Center.
This is it for today, dear readers. I am available to answer your questions and provide you with more information on New York City, Miami and U.S. real estate.
• Riccardo Ravasini is a real estate maven and an active agent in New York and Miami. He grew up in Italy where he studied Business and Finance at Bocconi University in Milan before moving to the U.S. He enjoys assisting people in the search for the perfect rental apartment as well as international buyers looking for smart investment properties. Contact him at +1-917-214-2509 or firstname.lastname@example.org.