The Brooklyn rental market, which has seen a record influx of new rentals in recent years, is starting to stabilize.
Facing stiff competition, many landlords were offering free rent and other concessions to get leases signed. But the number of new units becoming available started to slow down last year, and this year has seen a sharp decline, according to Nancy Packes Data Services. “It’s welcome news to everyone that we were able to absorb what was a 50-year high in supply and keep rents growing — it’s a testament to the strength of the market,” said company President Nancy Packes. “We think the majority of supply is now behind us, so it’s very favorable for the rental market.”
“There is a lot of supply coming to the market, but I feel it is generally in a few areas,” Moinian Group Director of Residential Properties Jacob Entel said. Moinian has joined with Bushburg Properties for its first development in Brooklyn, a 467-unit building at 123 Linden Blvd. in Prospect Lefferts Gardens, known as PLG. Rents will start at $2,300 for a studio, Entel said, and the building will launch its leasing efforts next month. While he acknowledged the building will face competition, Entel believes PLG’s point of difference will be a suite of amenities in an area where there has been little ground-up rental development: a Downtown Brooklyn building, he said, without the Downtown Brooklyn price tag. “Williamsburg doesn’t have great transport, Downtown Brooklyn is pricey,” he said. “When we built [Manhattan luxury rental building] Sky, people were saying the same thing — but we filled it up. And when you build a nice product, people are willing to pay for it. New York is always growing.”