Brooklyn Condominium Market | Sugar Hill Capital Companions
Despite months of record concessions in Brooklyn, Sugar Hill Capital Partners co-founder David Schwartz said on a panel Wednesday that his company was actually starting to lower them.
“We recently started to stabilize rents,” said Schwartz. “That doesn’t mean we don’t have to make concessions, but even the number of concessions we have to make is starting to decline.”
Schwartz attended a panel on Wednesday with Duke Properties CEO Albert Dweck, Benchmark Real Estate Group’s co-founder Jordan Vogel, and TerraCRG broker Adam Hess. The conversation dealt with topics ranging from concessions and living together to the perennial question of the nearest hot neighborhood in the district.
Although concessions became a seemingly permanent fact in the community, Vogel claimed there was a shortage of housing in Brooklyn, especially when it came to renovated housing units. He also said that even though they would give tenants a month or two of free rent, landlords could still do well financially, noting that they could walk away from the deal by getting them $ 90 per square foot.
“We all like to complain, because we’re in New York City, that I have to give a month off to rent an apartment,” said Vogel, “but any apartment we ask about the right rent we will this weekend to rent . Unfortunately for the renters out there, we generally don’t like asking about the right rent because we are greedy. “
The panel also looked at the district’s co-living trend, popularized by companies like Common. Schwartz said his company is using the concept in one of its buildings but is unsure of its long-term potential, but Dweck is more confident about the meaning of the concept. He noted that there is always some uncertainty when a new idea first hits the market.
“This is what an emerging market or trend looks like in the beginning,” he said. “Nobody knew what an iPod was when a CD was next to it. That is the same. “
Panellists remained largely optimistic about the Brooklyn rental market as a whole, despite the absorption problem and declining transaction volume, saying they continued to be encouraged by the borough’s continued population growth. Neighborhood candidates for the next big thing included Clinton Hill and Fort Greene.
“You won’t see that influx of people into Brooklyn change anytime soon,” Hess said. “I mean, people want to be here.”