In New York City — one of the hottest real estate markets in the world — the battle for tenants has escalated into an all-out brawl of sorts among luxury properties.
As it happens, the weapons of choice have grown beyond the standard fare of marble countertops, sweeping views and porcelain bathrooms with expensive fixtures.
An "arms race" is breaking out in Brooklyn to draw renters to the neighborhood's hip and expensive rental market, which is becoming increasingly saturated amid a construction boom of high-end apartment buildings. The soaring supply has done little to curb prices: Recent data from real estate firm Douglas Elliman shows the average rental cost in Brooklyn is well above $3,000 per month.
According to a report by Curbed, at least a dozen new high-end apartment buildings have hit the Brooklyn market in 2016, with more on the way. So how will these buildings compete to get the attention of potential occupants, who will be expected to fork over thousands per month in rent?
Enter real estate developers like the Gotham Organization, which has been bringing special events to residents for several years, including rooftop concerts with the likes of Lady Gaga at The Atlas, one of its properties in Manhattan. That tradition continues at Gotham West, a building that opened in 2013.
Gotham is now looking to do the same in Brooklyn, the organization's president, David Picket, told CNBC in a recent interview. Staying on the cutting edge of the luxury building market, which rents units for a median price well above average — around $6,000 — "is sort of like an arms race," Picket said.