Two articles in the New York Times concerning NYC real estate.
Just a year ago, the owners of New York’s most coveted retail and restaurant spaces held almost unassailable power to dictate the terms of their leases. But the recession is changing that equation, as rapidly rising vacancy rates and bankruptcies are making it hard to find new tenants.
Second, A Month Free? Rents Are Falling Fast, a story on residential rents in the city.
To put this second article in perspective, during the previous frenzy in NYC residential real estate, apartments generally leased so quickly, in days, if not hours, that when looking you had to have everything needed to secure the lease immediately available. That included about $1,000 in cash for a deposit, W2 forms, bank statements, and an extra months rent to pay as a “broker’s fee”. In one case, a friend found a suitable apartment, put in a deposit, and was on a waiting list behind three others that had already placed deposits that day. All those were trumped by one individual who came that evening and agreed to pay the entire year’s rent in advance, about ~$35,000 at the time. Can ‘t say I miss those days.