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RESIDENTIAL RENTAL MARKET REPORT
Fourth Quarter 2009 / Year-End Review
O w n e d a n d o p e r a t e d b y N R T L L C .
Citi HabitatsResidential Rental Market Report
4th Quarter
/ Year-End Review 2009
Our results or December 2009 continued the pattern seen during the prior eight months o 2009 o minor price adjustments providingus with urther evidence that the Manhattan rental market had ound its ooting in terms o pricing. Additionally, vacancy rates whichhistorically increase during this period actually decreased slightly over November’s rate, indicating positive absorption in the market.Results or the 4th Quarter 2009 vs. 3rd Quarter 2009 also were atypical o past market trends. Because the 3rd Quarter gures include peak season rental tallies, adjustments in rental prices and vacancy rates in the 4th Quarter are usually notable. However, during this 4th Quarterwe saw only nominal decreases in both rental pricing and a marginal increase in the vacancy rate.As we expected, the 2009 rental market underwent price corrections. Prices on average are approximately 7% lower than in 2008 andthis adjustment does not include landlord incentives such as ree rent which, when actored in, would make price reductions greater.Vacancy rates are marginally higher in 2009 (but continue to remain below 2%) rom 2008 totals. However, over 3,700 new rental unitscame to market during 2009 (south o 96th Street) and we saw incredible absorption with respect to this new product. During thisperiod, CHMG, Citi Habitats’ development marketing group, rented Silver Towers at a very brisk pace, renting over 40% o market-rateunits during its launch phase as well as the lease-up or completion o Dwell95, The Westbourne, Greystone, and The Hub.In 2009 Citi Habitats reached the incredible milestone o renting over 12,900 apartments in one year, an increase o 23% as comparedwith the 2008 total o more than 10,500 rental transactions. Many actors came into play during the year that contributed to achievingthis incredible eat. 2009 was a great year to be a renter; because o the combination o lower prices and landlord incentives, amazingrental opportunities existed in the marketplace. Some, previously priced out o the Manhattan market and living in an outer boroughwere now able to aford an apartment in Manhattan. Many upgraded and moved to a larger space or a neighborhood closer to their job or less or equal rent. In any event, these indicators are a clear testament to the health and vitality o the rental market and thelong-term prospects o our great City.Please note the ollowing with respect to this report:1. The statistics in this report were compiled using solely Citi Habitats closed transactions during the statedperiod(s).2. Average rents cited in this report are, or the majority, gross rents, not net efective rents, and do not includelandlord incentives, unless the ace rent reported on the lease was the net-efective amount. Factoring inrent concessions, average rents may be between 5% to 7% lower. However, not every rental transactioncontains a landlord concession.We hope you will nd this study inormative and we welcome any questions you may have regarding it.
Sincerely,Gary Malin, President
We fnd more New Yorkers homes than any other brokerage frm.
010002000300040005000
1800+2600+4Q 20084Q 2009
total 2009 Rental tRansactions
Overall transactional volume or Citi Habitats or the 4Q 2009was more than 2,600 transactions, representing an increaseo more than 30% in the total number o transactions romthe 4Q 2008 total o more than 1,800 transactions.
total 4Q Rental tRansactions
Overall transactional volume or Citi Habitats or 2009 wasmore than 12,900 transactions, representing an increase o 23% in the total number o transactions rom the 2008 totalo more than 10,500 transactions.
05,0007,50010,00012,50015,000
10,500+2008 200912,900+
RENTAL MARKET ANALYSIS:
4th Quarter 2009
AVERAGE RENTS:
Q4/09
Market-wide for Manhattan, the average 4Q 2009 rental price for a studio was $1,733, representinga decrease of 1.5% from 3Q 2009; a one bedroom, $2,343 representing a decrease of 3.3% from 3Q 2009; a two bedroom, $3,294representing a decrease of 2.6% from 3Q 2009; and three bedroom, $4,591 representing a decrease of 3.3% from 3Q 2009.
VACANCY RATES:
Q4/09
The overall vacancy rate for Manhattan for 4Q 2009 was 1.79% representing a 0.08% increasein the vacancy rate from the 3Q 2009 rate of 1.71%.A comparison of vacancy rates, by neighborhood, reveals that the SoHo/Tribeca area had the least amount of available apartmentsat 1.05%, while the Upper East Side, at 2.24%, ranked highest.
O w n e d a n d o p e r a t e d b y N R T L L C .
aVeRaGe Rent sUMMaRY: Q4/09
location stUDio 1BR 2BR 3BR
Chelsea 2048 2908 4381 5239East Village 1804 2281 3224 4100Gramercy/Flatiron 2035 2852 3912 5047Harlem 1112 1438 1680 2215Lower East Side 1698 2033 2782 3490Midtown East 1818 2370 3520 5026Midtown West 1926 2494 3428 4422Morningside Heights 1321 1851 2262 3012Murray Hill 1731 2398 3157 4213
VacancY sUMMaRY: Q4/09
location stUDio 1BR 2BR 3BRneiGHBoRHooD VacancY Rate
BPC / Financial Dist 2.05%Chelsea 1.33%East Village 1.72%Gramercy 2.09%Midtown East 2.18%Midtown West 1.53%Murray Hill 2.05%SoHo/TriBeCa 1.05%
neiGHBoRHooD VacancY Rate
oVeRall BlenDeD aVeRaGes: Q4/09
New Development w/ DM* 2434 3573 5972 8396Doorman 2144 3054 4402 5659Elevator*** 1758 2452 3723 5412Walkup** 1602 2041 2686 3910
BlDG classiFication stUDio 1BR 2BR 3BR
0122.51.5.5
1.881.962.36
ManHattan Rental VacancY Rates: Q4/09
Q4/08 Q1/09
Q2/09
Q3/09
Q4/09
* New Developments include all rental and condo buildings built ater 2003.**Walkup averages include brownstone and townhouse rentals.***Elevator averages in the downtown neighborhoods include a signifcant number o lot rentals compared to other neighborhoods.
SoHo/TriBeCa 2130 3145 5042 6898Upper East Side 2.24%Upper West Side 2.06%West Village 1.34%
ovr Vy: Q4/09 1.79%ovr Vy: Q3/09 1.71%Dffr 0.08%
Wall Street/BPC 2054 2728 3781 4943Upper East Side 1569 2087 3043 5131Upper West Side 1688 2351 3484 5401Washington Heights 1073 1360 1800 2049West Village 1993 2845 3916 5383
avrg: Q4/09 1733 2343 3294 4438avrg: Q3/09 1760 2423 3381 4591% chg -1.5% -3.3% -2.6% -3.3%avrg: Q4/08 1841 2527 3551 4712% chg: Q4-08/09 -5.9% -7.3% -7.2% -5.8%ovr Vy: Q4/08 1.96%Dffr: Q4 - 08/09 (0.17%)
1.71
1.76
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