This just cant be penciling well for Fitzrovia...30 storey towers that are taking 45(!!) months to construct (and still not finished) - super expensive masonry envelope with super expensive scaffolding to install it... built throughout the most inflationary years in recent history, and now the market rents are dropping and Fitzrovia is going in at $4k/mo. I dont get it
 
Agree with the general sentiment here and I also wonder how Fitzrovia will fare with all these multi tower projects and completions across the city. They very likely won't lower their rents BC it will inadvertently impact all their other leases and lease rates in other rental buildings. What they do instead (or are actually doing) is offer 2 free month incentives, a move in bonus, free wifi/internet, gift cards to their amenities, etc. I saw 36 Brentcliffe was offering 3 free months of rent, which is wild
 
1Ć0 said:
Agree with the general sentiment here and I also wonder how Fitzrovia will fare with all these multi tower projects and completions across the city. They very likely won't lower their rents BC it will inadvertently impact all their other leases and lease rates in other rental buildings. What they do instead (or are actually doing) is offer 2 free month incentives, a move in bonus, free wifi/internet, gift cards to their amenities, etc. I saw 36 Brentcliffe was offering 3 free months of rent, which is wild
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Yep, same with sales. You can artificially lower your end price without lowering the PSF with similar 'incentives'.
 
Fitzrovia has been entrusted with a billion dollars. They already won. It's people's pensions on the line.
 
1Ć0 said:
Agree with the general sentiment here and I also wonder how Fitzrovia will fare with all these multi tower projects and completions across the city. They very likely won't lower their rents BC it will inadvertently impact all their other leases and lease rates in other rental buildings. What they do instead (or are actually doing) is offer 2 free month incentives, a move in bonus, free wifi/internet, gift cards to their amenities, etc. I saw 36 Brentcliffe was offering 3 free months of rent, which is wild
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An existing multi-res landlord with which I am familiar has recently moved to offer 'incentives' on its gut-job turnover units.

These are in older buildings, where they were receiving the standard makeover (new kitchen cabinets/appliances etc., new bathroom finishes, new flooring throughout); although a recent batch was a bit more elaborate with opening up previous galley kitchens.

They are now pitching to existing tenants offering six months at your existing rent if you switch to the refurb.

I don't know how much uptake they'll get as long term tenants would be agreeing to rent increases of 50% or more. But the fact the incentives are out there........is suggestive of the challenges in the market.

If the incentive don't work...........
 
I get the incentives to avoid dropping base rents in rent-controlled units.. Why not just go with an enticing lower initial rent though for new builds? You can jack rates the next year if you want instead.
 
One month free upon signing a 12 month lease term is a better pitch than $3700 on a $4000 a month rental. In my opinion, The perception of maintaining market stability is easier with incentives than rent reductions too. A disastrous outcome for the fund is a fully leased building that has still lost 20% of its value.

The expectation of a bust looms with rental projects today only proceeding with a federally backed security
 
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Taken Jan 25th

20250125_184309.jpg
 
Further to Albert's comment in another thread:

AlbertC said:
That's cap. The average person who's not interested in topics of discussion like urban planning and design, but who still needs a place to live, usually prefers buildings that are primarily clad in brick if they had a choice. And a good amount of people who are not keen on urban discussions still have a general radar of what is deemed as cheap, such as the spandrel heavy condos. The "easier to sell" spiel is just jargon to pull wool over people's eyes.
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My friend who doesn't follow development closely, noted that the warm colour and texture do so much to enhance a building's design, even when it's a basic box. Nice to see this understanding filtering out beyond our bubble.

Earlier tonight:

WhatsApp Image 2025-05-02 at 11.46.13 PM.jpeg
 
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