As reported by The Real Deal and The Bridge, the competition among new buildings has led to a glut. The Real Deal:
In July, concessions at residential rental buildings in the borough were the highest they have been in the seven years that they’ve been tracked, according to Douglas Elliman’s July rental market report for Brooklyn, Manhattan and Queens. This demonstrates how protective landlords are of base rents at their buildings, according to Hal Gavzie, executive manager of leasing at Douglas Elliman.That means that some 22.1% of new leases involve concessions, versus 9.5% a year before, with concessions averaging 1.4 months of free rent. (Longer leases get bigger concessions.)
As Miller Samuel’s Jonathan Miller observed, this current percentage is a new but uncertain situation, because at a certain point tenants can't afford the base rents.
The question, not yet posed, is how much this will lead to concessions in condo sales.