Real Estate after Covid19
Now that the second quarter of this crazy 2020 is behind us, we analyzed the performance of our managed portfolio to see how our client’s properties have reacted to the pandemic stress.
Here is a quick report of what we are witnessing as property managers:
The area where we registered the highest volume of vacancies and lease breaks is Midtown Manhattan. In particular, the luxury segment of the market, which was already on a slower trend prior to COVID19, seems to now be struggling with turnover of new tenants.
Without tourists and most commuters, the streets of Manhattan don’t look like they used to. On the other hand, we are noticing activity picking up in areas with a lower density of population such as East Williamsburg and Prospect Heights, in Brooklyn. The vast majority of our Brooklyn portfolio is maintaining the rental rates of 2019, early 2020.
Properties with outdoor space such as private terraces and backyards are in high demand. With minor cosmetic improvements like a new wooden deck or a landscape intervention, you can easily upgrade your property and achieve a higher rate.
Communication is key! We are investing several hours talking to our tenants to understand their personal and financial issues, which may lead to rent reductions or a lease break. These are difficult times for everyone, we believe that honest and transparent communication will help in the long run.