NYC condos grab larger share of the pie

Brokers predict Manhattan co-op boards may have to relax some restrictions to compete

The Real Deal
By Lauren Elkies
December 2006

It's unlikely that prestigious Upper East Side co-op buildings like 740 Park Avenue and 834 Fifth Avenue are going to let the riff-raff in any time soon.

However, Manhattan co-op buildings as a whole -- despite trumping condos by three-to-one in sheer number -- have been losing a bit of steam as the primary apartment choice in recent years.


Source: Miller Samuel

Despite generally costing more per square foot, condos are taking up an increasing share of the real estate market in Manhattan -- accounting for more than 50 percent of sales in recent quarters.

Some brokers are saying co-ops will eventually have to reposition themselves to adapt: Changes could involve slightly more lax financial requirements and even tweaks to the typical co-op board approval process in some buildings.

Jonathan Miller, president and CEO of appraisal firm Miller Samuel, said he would suspect that in some buildings, "you may see co-ops limiting and, especially in a weaker market, loosening financial requirements." Still, that may take awhile, as many brokers say co-ops are getting tougher on candidates recently, and there are more board rejections now than in a long time.

Read more...