Our philosophy has been to sell net effective rent
, period," says Mike Manelis, Senior Vice President of Property Operations for Equity, with responsibility over yield management.
In January, it revised its projections for 2015's net effective rents
in Class A buildings, raising them from earlier estimates by 11.
Again, the question is one of the net effective rent
for the landlord, which by definition is different from the market rent.
Net effective rent
increases should be about 4 percent in 2008, as the renters share of total households continues to rise from the record lows of 2004.
The next step in the analysis is to compare the net effective rent
with the total cost of operating the space.
The choice over the method of analysis can have a significant impact on the amount of the net effective rent
derived from the comparable property transaction.
The next two or three major occupiers to take up space in the city will benefit from this historically low net effective rent
, and those who hold out will unfortunately lose out.
Several brokers agreed, but with a caveat: that net effective rent
would continue to fall.
Nationally, net effective rent
increases are growing at healthier rates this year.
Working in tenants' favor is the change in the net effective rent
59 per foot, the net effective rent
Pryor Cashman is paying for 110,000 square feet at 7 Times Square; and $87.
In terms of net effective rent
, studios start at $2,094, one-bedrooms start at $2,579 and two-bedrooms start at $3,706.