LIC GLUT?

This week comes two stories that should give a pretty good indication of where things are headed in the LIC, and NYC, real estate market.  First, an article in DNAinfo talks about the increased concessions, in particular a free month’s rent, that landlords are giving prospective tenants.  The freebies are up to 19%1, which supposedly is the highest percentage in six years.  While the specifics of the numbers are a little nebulous, I have little doubt that the trend is real and that it’s accelerating, or about to.  Implied in the story2, is that while reported rents in the city keep inching higher, or at least staying afloat, cracks are starting to appear.

The second story will be the proof in the pudding, or not, for Long Island City.  The Real Deal reports that next week, a 284-unit rental building in Court Square, will begin leasing.  With one-bedrooms starting just shy of $3,000 a month, I’m guessing they won’t move without a free month – and even then the absorption may be slow.

Interestingly, two penthouse apartments in the building will be asking $12K and $15K a month.  Which is the first time rental product of this caliber has ever been offered in Long Island City.  To the best of my knowledge, the highest apartment rents in town were roughly half the latter’s number, and those were a handful at most.

Following in the footsteps of pricey local real estate, comes a story on the sale of an apartment in The View for $3.9 million.  This exact apartment was sold for around $3.4 million just under two years ago.  More interesting, was the listing of the 1,900 square foot penthouse in Sam Charney’s high end development The Jackson for $4 million, or over $2,000 a square foot, and a three bedroom with 1,952 square feet in The Factory in Court Square for $3.45 million.  Manhattan pricing is coming to LIC, just as the city has topped out.  Things are getting interesting around here, real-estate wise anyway.

Even Landlords Know Rents Are Too High – what are they smoking?

Rabsky to Launch Leasing at Halo LIC – the penthouses scream the name of Tony Manero

LED Luminary Buying in The View for $3.9 million – a luminary in LED?  Ha, now I get it!

Why LIC is Home to NYC’s Biggest Building Boom – not much new here, and I think the writer quoted every broker in LIC.  But given that it’s the FT, it provides confirmation to London/Europe that LIC is legit

Ampiera Group Plans 139-Key Hotel – 16 stories at 38-70 12th Street, it ain’t gonna be a Ritz-Carlton

Greystone Planning 117-unit LIC Rental Building – 23 stories on Queens Plaza, ‘hmm’ on the timing

Bowling Alley in Hunters Point Hoping to Open by August – owners of Williamsburgs ‘The Gutter’ appeared before CB2’s for a liquor license Wednesday, looks pretty cool

1. versus what? all leases or just new tenants, is not given; nor what time period it’s in comparison to [↩]
2. or at least as I’m reading it [↩]