Landlords Pare Perks, Especially at Top Towers
February 13, 2011
By: Theresa Agovino

Landlords continue to dole out incentives to lure tenants to their buildings last year, despite a surge in leasing activity, according to data from brokerage Studley. However, there's evidence that landlords' largesse is diminishing, especially for top-tier buildings in midtown.

In the fourth quarter of last year, the number of months of free rent that midtown landlords offered remained unchanged from the corresponding period in 2009. But landlords did get slightly stingier in the construction allowances they offered. In the final three months of last year, that perk fell to between $60 and $75 a square foot, down from $65 to $85 during the same time frame in 2009. ...

...Steven Coutts, Studley's senior vice president of national research services, predicted that this year, concessions will tighten in midtown. In some cases, that has already happened: Landlords awarded tenants in Class A midtown buildings an average of 8.1 months of free rent in the last quarter of 2010, down from 9.8 months in the corresponding period a year earlier....

Link to article