The two hefty leases marked an inventory for Manhattan’s trophy rentals — which appraiser Jonathan Miller defines as the top 1 percent of the market, with rates starting at $25,000 per month — which fell more than 40 percent year-over-year in January, while new leases rose (albeit at a more modest pace).
The momentum has been building since before the pandemic and accelerated early last year, when leases of $20,000 per month or more rose, according to data from UrbanDigs.
Although prices have increased, agents say big ticket volumes are exceeding their expectations.
“I’ve personally never seen the prices where they are,” said John Giannone of Douglas Elliman The real deal in December. “When the high €100 per square meter for rent starts to become the norm, it is completely different from what we are used to.”
Miller attributed the increase in rental prices to the strength of the ultra-luxury market, which was able to close a number of notable deals in late 2025 and early 2026.
“It really is that dominant,” Miller said of the ultra-luxury market. When deep-pocketed buyers “can’t get the place they want, they rent.”
Serhant’s Peter Zaitzeff, who worked with Giannone and the Lauran Muss team on the lease at Naftali’s Benson, attributed the monthly price to a lack of supply and “people willing to pay what it takes to get a deal done.”
Market data shows that ultra-high-end rental properties are on the rise, but this remains a limited area as rental agreements of this caliber are often the result of special circumstances in the life of the owner or tenant.
For example, Zaitzeff’s clients wanted to rent while renovating their townhouse. Julia Haart, co-owner of modeling agency Elite World Group, opted to rent the sprawling penthouse at 70 Vestry Street that she bought with her estranged husband, Silvio Scaglia, for $125,000 a month during their contentious divorce battle. (Hart, who kept the triplex in the divorce, sold it earlier this month for $57 million.)
Not so fast…
In an inventory-hungry market, the shiny new stuff wins.
Legion Investment Group and Nahla Capital’s 1122 Madison Avenue claimed the top two spots in Olshan Realty’s weekly report, with contracts for apartments asking $39 million and $36.5 million. They were the most expensive of 31 Manhattan homes asking $4 million or more between February 9 and 15.
The 26-unit Upper East Side building has already topped the weekly contract reports twice since launching sales last month and is also working its way into monthly new development reports.
Corcoran Sunshine, which is handling the sale, reported that the project recorded 10 signed contracts in January – more than any other new project – at an average asking price of more than $4,200 per foot. Market-resistant gave the monthly crown to Strathmore with 13 deals, but highlighted a nearly $23 million contract at 1122 Madison as one of January’s highlights.
Early momentum doesn’t happen in a vacuum. The new development pipeline in Manhattan has slowed significantly, with few projects being launched even as demand remains high.
“In terms of actual stock delivery to the market, you see a lull,” said Daniel Pupke of Reuveni Development Marketing TRD last fall. “We are between two eras of cycles.”
In the meantime, developers like Legion and Nahla are betting on boutique projects in upscale neighborhoods, rather than the Billionaires’ Row supertalls that once powered Manhattan’s luxury new construction market.
NYC deal of the week
Two units on the 78th floor at 432 Park Avenue traded for $52.5 million, marking the most expensive deal to hit the city’s market this week. The apartments were at the heart of a dispute between the buildings’ developers, Harry Maclowe and CIM Group. Macklowe forfeited the units to CIM Group last year after defaulting on the company’s loans.
Read more
Apartment at Naftali’s 1045 Madison rents for $95K
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Jardim penthouse seen in ‘Owning Manhattan’ sold for $15 million
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