Saturday, June 6, 2009
Renters Find Deals Galore
From the NY Times:
THE rental market in New Jersey, which up to now has only grown stronger as the sales market declined, is finally showing its own signs of weakness.
And what that means, of course, is that renters are now in a stronger position to get deals.
Average monthly rents are dipping around the state, according to market analysts, as well as some of the more candid building owners.
Also, incentives — like a month or two of free rent — are more commonly available, even at some of the nicest and newest buildings, some of them originally designed to be high-priced condominiums.
In Edgewater, where Savanna Partners put $100 million into converting the Peninsula at City Place from rental to condo just two years ago, units are now being offered as rentals again — with two months free on a 14-month lease.
…
At a building in downtown Red Bank called the Metropolitan, which opened last year as a 37-unit condominium and switched to rental in late March after only seven sales, a month-free-rent deal quickly drew 15 tenants.
…
In more suburban Saddle Brook, a rental complex at 140 Mayhill opened in January and is doing well — 90 of 158 units leased (with a month-free-rent option) — but definitely not as well as it would have done even last year, according to the builder, the Value Companies.
“We’ve noticed ‘vacancy creep’ across northern New Jersey,” said Jonathan Moore, a vice president at the Value Companies, which owns 3,500 apartments in four states. “Where it used to always be 99 percent occupancy, now you see 96, 95, 94.”
Value is offering renter incentives at about half its properties, according to Mr. Moore.
…
Statewide, the average rent dipped 1.2 percent in the first three months of the year, according to the real estate investment firm Marcus & Millichap, which found that in 2008, the average rent was up 2.2 percent. The company predicted that for this year, the decline would be 3 percent, to $1,229 per month.
Other estimates of current rental trends vary — some say the average rent decline is more than 1.2 percent so far this year, and the Otteau Valuation Group says it is less — but the overall opinion is that the market is weakening.
Meanwhile, more new units will be added to the market this year than last, according to market analysts — about 2,250 in 2009, versus 1,950 in 2008.
THE rental market in New Jersey, which up to now has only grown stronger as the sales market declined, is finally showing its own signs of weakness.
And what that means, of course, is that renters are now in a stronger position to get deals.
Average monthly rents are dipping around the state, according to market analysts, as well as some of the more candid building owners.
Also, incentives — like a month or two of free rent — are more commonly available, even at some of the nicest and newest buildings, some of them originally designed to be high-priced condominiums.
In Edgewater, where Savanna Partners put $100 million into converting the Peninsula at City Place from rental to condo just two years ago, units are now being offered as rentals again — with two months free on a 14-month lease.
…
At a building in downtown Red Bank called the Metropolitan, which opened last year as a 37-unit condominium and switched to rental in late March after only seven sales, a month-free-rent deal quickly drew 15 tenants.
…
In more suburban Saddle Brook, a rental complex at 140 Mayhill opened in January and is doing well — 90 of 158 units leased (with a month-free-rent option) — but definitely not as well as it would have done even last year, according to the builder, the Value Companies.
“We’ve noticed ‘vacancy creep’ across northern New Jersey,” said Jonathan Moore, a vice president at the Value Companies, which owns 3,500 apartments in four states. “Where it used to always be 99 percent occupancy, now you see 96, 95, 94.”
Value is offering renter incentives at about half its properties, according to Mr. Moore.
…
Statewide, the average rent dipped 1.2 percent in the first three months of the year, according to the real estate investment firm Marcus & Millichap, which found that in 2008, the average rent was up 2.2 percent. The company predicted that for this year, the decline would be 3 percent, to $1,229 per month.
Other estimates of current rental trends vary — some say the average rent decline is more than 1.2 percent so far this year, and the Otteau Valuation Group says it is less — but the overall opinion is that the market is weakening.
Meanwhile, more new units will be added to the market this year than last, according to market analysts — about 2,250 in 2009, versus 1,950 in 2008.
Labels: renters
# posted by NJ Homes Site @ 9:11 AM 
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