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	<title>Observer &#187; I Got It, Thanks: Leases in Manhattan&#8217;s Doorman Buildings Plunge</title>
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		<title>Observer &#187; I Got It, Thanks: Leases in Manhattan&#8217;s Doorman Buildings Plunge</title>
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		<title>I Got It, Thanks: Leases in Manhattan&#8217;s Doorman Buildings Plunge</title>

		<comments>http://observer.com/2009/07/i-got-it-thanks-leases-in-manhattans-doorman-buildings-plunge/#comments</comments>
		<pubDate>Thu, 09 Jul 2009 12:23:29 -0400</pubDate>
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		<description><![CDATA[<p>New rent stats suggest that doorman buildings are starting to go out of fashion for the masses as Manhattanites seek to cut back on expenses&mdash;even if it means having to hoof their own packages upstairs.</p>
<p class="MsoNormal">The number of new leases for apartments in doorman buildings dropped 63.2 percent annually in the second quarter of 2009, while apartments not armed with service teams saw a less marked year-over-year drop (47.7 percent) and a 58.2 percent <em>increase</em> in new leases from the first quarter. The stats come from Miller Samuel and Douglas Elliman&rsquo;s inaugural Manhattan <a href="http://www.prudentialelliman.com/NYCPhotos/retail_reports/MRMO2Q09.pdf">rental market report (PDF)</a>, released Thursday. The number of new leases for non-doorman apartments jumped to 943 from 596 in the first quarter.</p>
<p class="MsoNormal">This is bad news for doormen, <a href="/2009/real-estate/white-gloves">who have already seen their tips dwindle and jobs disappear</a>. They provide a number of amenities: taking care of the laundry, bringing tenants&rsquo; packages upstairs, helping carry tenants&rsquo; bags, and often walking tenants&rsquo; dogs and keeping an eye on the kids&mdash;and getting all up in the business of some tenants as well. Your friend with a drinking problem is sleeping on the futon? Girlfriend isn&rsquo;t coming around anymore? Big party last night? They know.</p>
<div class="pullquote">
<p>While doorman apartments currently cost $50.36 per square foot, non-doorman apartments cost $34.59, according to Mr. Miller, a 45 percent differential.</p>
</div>
<p class="MsoNormal"><span>But, apparently, the renters of 3,820 apartments in the second quarter of 2008 embraced the intrusion, when the economy was faring better. Now that it&rsquo;s become clear this is not your uncle&rsquo;s recession, there were only 1,406 new leases in doorman apartments in the same period in 2009, down also from 1,674 in the first three months of the year. </span></p>
<p class="MsoNormal"><span>Each doorman costs around $80,000 ($37,315 in salary, plus overtime, benefits, training and other expenses), <a href="http://www.nytimes.com/2006/04/09/realestate/09doorman.html?pagewanted=2">according to a 2006 <em>Times</em> article</a>. That means higher rents in apartments that are already likely to be pricier for related reasons&mdash;like a better location, taller building, and larger density of three- and four-room lofts, according to Jonathan Miller, president and CEO of Miller Samuel and the rental report&rsquo;s author.</span></p>
<p class="MsoNormal">While doorman apartments currently cost $50.36 per square foot, non-doorman apartments cost $34.59, according to Mr. Miller, a 45 percent differential.<span><br />&nbsp;</span></p>
<p class="MsoNormal"><span>OVERALL LEASING WAS DOWN 58.3 percent from 2008, and rents per square foot were down 17.5 percent&mdash;in large part because new renters aren&rsquo;t entering the market (since they can&rsquo;t find jobs), and also because laid-off workers are leaving the market, Mr. Miller said.</span></p>
<p class="MsoNormal"><span>But all is not lost: </span>Leases actually increased over the first quarter by 2.4 percent, and <span>leasing activity even picked up in June: 46.3 percent of all second-quarter leasing activity happened in June, a steady rise from </span>20.4 percent in April and 33.3 percent in May. Usually, according to Mr. Miller, such leasing activity is more evenly distributed over the spring months.</p>
<p class="MsoNormal">Meanwhile, non-doorman apartments may become the new trend in a recession that Mr. Miller said is not ending anytime soon&mdash;though he stopped short of saying non-doorman apartments are the new thing. &ldquo;We had a significant surge in non-doorman rental activity,&rdquo; he said. &ldquo;I&rsquo;m not sure that that will be sustained, given one quarter is not a trend.&rdquo;</p>
<p class="MsoNormal">Still, we&rsquo;ll take it.</p>
<p class="MsoNormal">Mr. Miller added, &ldquo;You might continue to see less of a decline in rents or the demand for rents at the lower end of the market as the economy remains weak.&rdquo; And most non-doorman apartments, Mr. Miller granted, are at the lower end of the market.&nbsp;</p>
<p class="MsoNormal"><em>bkavoussi@observer.com</em></p>
]]></description>
		<content:encoded><![CDATA[<p>New rent stats suggest that doorman buildings are starting to go out of fashion for the masses as Manhattanites seek to cut back on expenses&mdash;even if it means having to hoof their own packages upstairs.</p>
<p class="MsoNormal">The number of new leases for apartments in doorman buildings dropped 63.2 percent annually in the second quarter of 2009, while apartments not armed with service teams saw a less marked year-over-year drop (47.7 percent) and a 58.2 percent <em>increase</em> in new leases from the first quarter. The stats come from Miller Samuel and Douglas Elliman&rsquo;s inaugural Manhattan <a href="http://www.prudentialelliman.com/NYCPhotos/retail_reports/MRMO2Q09.pdf">rental market report (PDF)</a>, released Thursday. The number of new leases for non-doorman apartments jumped to 943 from 596 in the first quarter.</p>
<p class="MsoNormal">This is bad news for doormen, <a href="/2009/real-estate/white-gloves">who have already seen their tips dwindle and jobs disappear</a>. They provide a number of amenities: taking care of the laundry, bringing tenants&rsquo; packages upstairs, helping carry tenants&rsquo; bags, and often walking tenants&rsquo; dogs and keeping an eye on the kids&mdash;and getting all up in the business of some tenants as well. Your friend with a drinking problem is sleeping on the futon? Girlfriend isn&rsquo;t coming around anymore? Big party last night? They know.</p>
<div class="pullquote">
<p>While doorman apartments currently cost $50.36 per square foot, non-doorman apartments cost $34.59, according to Mr. Miller, a 45 percent differential.</p>
</div>
<p class="MsoNormal"><span>But, apparently, the renters of 3,820 apartments in the second quarter of 2008 embraced the intrusion, when the economy was faring better. Now that it&rsquo;s become clear this is not your uncle&rsquo;s recession, there were only 1,406 new leases in doorman apartments in the same period in 2009, down also from 1,674 in the first three months of the year. </span></p>
<p class="MsoNormal"><span>Each doorman costs around $80,000 ($37,315 in salary, plus overtime, benefits, training and other expenses), <a href="http://www.nytimes.com/2006/04/09/realestate/09doorman.html?pagewanted=2">according to a 2006 <em>Times</em> article</a>. That means higher rents in apartments that are already likely to be pricier for related reasons&mdash;like a better location, taller building, and larger density of three- and four-room lofts, according to Jonathan Miller, president and CEO of Miller Samuel and the rental report&rsquo;s author.</span></p>
<p class="MsoNormal">While doorman apartments currently cost $50.36 per square foot, non-doorman apartments cost $34.59, according to Mr. Miller, a 45 percent differential.<span><br />&nbsp;</span></p>
<p class="MsoNormal"><span>OVERALL LEASING WAS DOWN 58.3 percent from 2008, and rents per square foot were down 17.5 percent&mdash;in large part because new renters aren&rsquo;t entering the market (since they can&rsquo;t find jobs), and also because laid-off workers are leaving the market, Mr. Miller said.</span></p>
<p class="MsoNormal"><span>But all is not lost: </span>Leases actually increased over the first quarter by 2.4 percent, and <span>leasing activity even picked up in June: 46.3 percent of all second-quarter leasing activity happened in June, a steady rise from </span>20.4 percent in April and 33.3 percent in May. Usually, according to Mr. Miller, such leasing activity is more evenly distributed over the spring months.</p>
<p class="MsoNormal">Meanwhile, non-doorman apartments may become the new trend in a recession that Mr. Miller said is not ending anytime soon&mdash;though he stopped short of saying non-doorman apartments are the new thing. &ldquo;We had a significant surge in non-doorman rental activity,&rdquo; he said. &ldquo;I&rsquo;m not sure that that will be sustained, given one quarter is not a trend.&rdquo;</p>
<p class="MsoNormal">Still, we&rsquo;ll take it.</p>
<p class="MsoNormal">Mr. Miller added, &ldquo;You might continue to see less of a decline in rents or the demand for rents at the lower end of the market as the economy remains weak.&rdquo; And most non-doorman apartments, Mr. Miller granted, are at the lower end of the market.&nbsp;</p>
<p class="MsoNormal"><em>bkavoussi@observer.com</em></p>
]]></content:encoded>
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