Compiled by Linda Collins
Brooklyn Daily Eagle

BROOKLYN — Apartment rents in Brownstone Brooklyn are on the decline, according to a third quarter report released this week by Brownstone Homes (brownstone-homes.com), a Brooklyn real estate brokerage.

“Our findings show a dramatic rent reduction during the third quarter period,� the BrownstoneReport.com said.

The report, which focuses on apartments rented (and not rented) during the third quarter of 2009, also noted that the number of lease signings nearly doubled in that period.

More than 50 percent of new leases signed during the period were below prior rental amounts, some by as much as 18 percent. Additionally, the real estate firm reported, apartments are generally taking longer to find tenants and many units are sitting idle longer.

“Landlords are occasionally unwilling to accept lower rents, with the result that some apartments are not finding tenants,� the report said. “However, well-priced apartments are still moving.�

A full 52 percent of Brooklyn leases signed during the quarter included rent reductions ranging from 1 percent to 18 percent, according to the report.

In Park Slope, 50 percent of rents declined, with monthly rents falling from 5 percent to 13 percent. In Brooklyn Heights, 50 percent of rents declined and 25 percent were unchanged from the prior year. Monthly rents fell from 5 percent to 14 percent.

In other neighborhoods, 60 percent of rents declined on average.

Brooklyn rents have fallen, in part, due to the loss of jobs, and due to the conversion of unsold condominiums and foreclosed homes into rental property, according to Josh Blackman, a broker at Brownstone Homes.

The Brooklyn data reflects a national trend, he noted.

“As reported by the Wall Street Journal, rents are falling faster than any time in the last decade. Axiometrics Inc., an apartment research firm, reported a New York City rental decline of 10.8 percent for the second quarter of 2009,� said Blackman.

Typically, the spring and summer are when most apartments rent, which means the declines may have a significant impact on a landlord’s revenue.

“This has been a particularly challenging year for Brooklyn landlords,� said Blackman. “With the increase in rental apartments on the market, some tenants demand rent reductions, and rather than chance apartment vacancies, some landlords agree to reduced rents.

“When rents don’t rise — or worse, when apartments stay vacant — landlords who carry high mortgages face the danger of default.�

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