In few places have the wild gyrations triggered by the pandemic and its aftermath been more evident than in New York’s luxury rental prices. As Covid-wary people fled the Big Apple for greener pastures in 2020 and 2021, rents fell to levels not seen in years and concessions flooded the rental market.
Since then, the rental price pendulum has swung back to record levels, leaving observers complaining of whiplash.
According to a Knight Frank report released earlier this year, luxury apartment rents in New York City have climbed 49% since the first quarter of 2021, and 19% in 2022 alone. Rents in Central Park South reached median prices of $10,995, and the coveted enclaves of Tribeca and Soho took second and third place, respectively, with monthly asking rents hitting $9,500 in the former and $6,395 in the latter. In addition, given the decline in the level of rental stock in Manhattan since 2020, rents are expected to increase further.
Earlier this year, New York City could be said to have entered the era of ultra-luxury rentals, perhaps in response to the last decade’s plethora of luxury condominiums with very high-end interior finishes. range and luxurious suites. It seemed that lifestyle preferences had evolved crazier than rental prices in Manhattan, leaving even the most affluent to choose a renter-by-choice lifestyle and opt for a standard lease over a contract sign.
Co-ownership rivals
“The luxury rental market in Manhattan is thriving, and overall we are seeing developers ready to market rentals that truly compete with condo offerings,” says Sarah Patton, co-head of new development, New York, for Compass Development Marketing Group.
“With the general lack of new condo inventory, many people are opting for spacious rental residences with careful attention to design and complemented by amenities tailored to their lifestyle. When it comes to the influx of traffic over the past few months, we’re seeing a combination of people waiting for the higher interest rates before purchasing, people moving to town for the first time, and/or people who have housing outside the city and now want a viable pied-à-terre in New York.
Here are examples of ultra-luxury rentals:
Anagram Circle of Columbus. Given the condo-like features and finishes, prices range from more than $24,000 for a four-bedroom residence in this rental developed by Global Holdings and designed by INC. The building includes more than 13,000 square feet of amenities, including an outdoor veranda favored for co-working and happy hours.
“As pioneers in the ultra-luxury space at 15 Central Park West, 520 Park Avenue and Greenwich Lane, we knew there would be demand for a similar level of quality, service and amenity in a rental conveniently located just steps from Central Park,” says Eyal Ofer, founder and president of Global Holdings Group. Anagram Columbus Circle launched the rental in June.
The copper. Formerly known as American Copper Buildings, The Copper, designed by SHoP Architects, is among Manhattan’s premier luxury rental properties. Considered a legendary part of the East River streetscape, the property is rented out at all times despite rents running upwards of $25,000 each month.
111Charles. Having begun leasing efforts in June of this year, this property is among a handful of newly developed buildings to spring up in the West Village in recent years. Developer Aurora Capital Associates could have chosen to make the property a condominium, but instead decided to fill a hole in the village’s market, which lacked newly constructed luxury apartment buildings.
When 111 Charles hit the market last summer, it only took one month to rent each of the 19 residences. This included a $40,000-a-month penthouse. Leasing and marketing are managed by Compass Development Marketing Group.