Thinking of all the college grads who just busted their asses looking for reasonably priced rentals in the city, the NY Times looked at one-bedroom rentals in the $1,000 range. The perhaps-catch: None were in Manhattan, but that may be due to the fact that many Manhattan deals "often change hands by word of mouth." Quite a few of the apartments sounded nice, but Gothamist enjoyed the ritual of the Times actually attempting to find these apartments:
The toughest part about finding the apartments was occasionally having to endure the ritual of the scoffing broker, who delighted in spending the first few minutes of an exploratory phone call insisting that there were no one-bedrooms out there in the $1,000 range. One broker said: "$1,100 in Williamsburg? Must be a dump," as he scrolled down his listings. Another broker in the Bronx said "$1,100 in the city? Must be a studio."
Well, even brokers need to laugh, too, we guess.
And Crain's has a story about commercial real estate's phantom space. Somehow, buildings like 666 Fifth Avenue and 230 Park Avenue, plus 800 Third Avenue and 1 Penn Plaza, have been able to increase their rental revenue by adding more space to the so-called "loss factor":
In Manhattan, the actual area that a tenant occupies is often less than the area upon which the rent is based. This difference between the two is known as the “loss factor.” The loss factor is often made up of common areas such as hallways, lobbies and restrooms. However, in recent years, the loss factor also included nonexistent space.
You can read the Commercial Tenant Representation group's phantom space study. And while apartment rentals aren't done on a per-square-foot basis, we pretty sure most square footage estimates are generous by at least 10%.