Manhattan Real Estate Takes A DipDid Tishman and Blackrock Overpay For Stuy Town?

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The notion that troubles on Wall Street are starting to filter out to the broader New York City economy got a boost this morning when a real estate group released its latest rental market report showing that all average apartment rents decreased in October. The downturn in rents was most sharply felt in doorman one and two bedroom units, according to The Real Estate Group which released the report.
This marks the first time this year that average rents in Manhattan decreased. But tell your studio-dwelling friends not to get too excited—rents for studios remain stable.
Also, you may have some added negotiating room when it comes to those always painful broker fees, as landlords are reportedly giving brokers who close deals things like all-expense paid trips, overseas airlines tickets, free I-Pods and digital cameras. Why not ask your broker if you can have the I-Pod?
Actually, the report raises some questions about how that deal led by Tishman Speyer to buy Peter Cooper Village/Stuyvesant Town might be working out. Recall that Tishman partnered with the Blackrock Group and the California State Teachers' Retirement System to buy up the housing complexes for $5.4 billion just one year ago. At the time it was the most expensive real estate transaction in American history. Now the Real Estate Group reports that some of the most lavish deals for brokers—those free trips and airline tickets—are coming from Peter Cooper and Stuy Town.
Market Report [Tregny.com; pdf]

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