Effective office rents dip downtown, midtown.Effective office rents continued to decline in both midtown and downtown New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. in 2003, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a special report released by national commercial real estate services firm Studley. Interestingly, the Studley Effective Rental Index (SERI SERI Sustainable Europe Research Institute SERI Special Education Resources on the Internet SERI Solar Energy Research Institute (Golden, Colorado) SERI Singapore Eye Research Institute SERI Schepens Eye Research Institute ) 2004 report showed that while total rent has been declining since peaking in 2000, Midtown Manhattan posted only a 1.4% decline in 2003, dropping much less than in the previous year. Although falling more significantly (-7.0%) than total rent, the net rent also posted a much smaller decline than in 2002 (-23.3%). Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and real estate taxes rose sharply, the report said, each posting a 10.0% increase. However, electricity costs remained unchanged. The typical concession package in Midtown increased noticeably, up by 15.1%. The impact on tenant effective rents was a reduction of 4.6%, far less than the drop in the previous year. Negatively impacted by rising operating expenses, real estate taxes and concessions, landlord effective rents--which deduct operating expenses, real estate taxes, tenant electricity, concessions and commissions--declined by 15.6%. In contrast, Downtown New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of experienced a net rent decline of 15.4% during 2003, partially offset by rising non-rent occupancy expenses, thus limiting the drop in total rent to 7.8%. Operating expenses rose for the twelfth consecutive year in Downtown, increasing by 3.3% for the year. After a sharp increase in 2002, real estate taxes rose at a modest rate of 0.8%. Electricity costs remained unchanged. According to the report, the typical concession package value shank shank (shangk) 1. leg (1). 2. crus ( 2). shank n. The part of the human leg between the knee and ankle. somewhat for Midtown tenants, decreasing by 7.3%. As a result, the tenant effective rent decreased at a slower rate (-8.0%) than in the recent past. The landlord effective rent posted a significant drop of 23.4% for the year. "Tenants have been benefiting from the steady decline in effective rents over the last few years," explained Studley Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Mitchell Steir. "Since peaking in 2000, effective rents have been falling. However, as the rate of decline slows, it appears that the real estate market may be entering into a new phase--one of greater balance between landlord and tenant." |
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