The vacancy rate for larger Manhattan apartment buildings has dropped to near 2 percent and should remain there or lower for the next several months, according to a new report from investment-sales firm Marcus & Millichap. The report covered market-rate buildings with at least 40 apartments.
Reasons for the tighter vacancy rates are familiar: a strong local economy creates new jobs, which creates the need for places for people to live. The report forecasts that 36,000 jobs will have been created in Manhattan this year, a 1.5 percent increase from last year. Also, developers are building relatively few market-rate apartments: Marcus & Millichap forecasts 2,500 apartments completed in 2007.
The report’s yet more evidence of why it’s a great time to be a rental agent.