Low common charges have always been a factor of attraction for buyers on the hunt for a luxury condo.
Across the city, board members are looking for creative ways to reduce common charges and, at the same time, beef up amenities. The goal: to make their buildings as attractive as possible to home seekers as well as to current residents.
This month, The Real Deal magazine ranked condos in Manhattan below 100th Street with more than 50 units, then delved into how a few are managing to offer both rock-bottom fees and top-of-the-line services.
For those 366 condos surveyed, monthly common charges — the building’s operational and maintenance expenses — range from slightly less than a dollar per square foot to nearly $4, according to data compiled by StreetEasy.
The lowest common charges are at Downtown by Philippe Stark at 15 Broad Street, where residents pay 92 cents per square foot yet have a doorman, a concierge, a fitness center, a roof terrace and a host of other amenities. An important element towards low common charges is the size of the building. There are 382 units at 15 Broad Street. The more space there is in a building the more common costs can be spread over a larger square footage therefore reducing the cost per square footage.
The other buildings in the first positions in terms of lowest common charges are: theAtelier at 635 West 42nd Street, which charges 97 cents. And rounding out the top five: the Alexander at 250 East 49th Street, 99 cents; 35 West 15th Street, $1; and Hudson Hill Condos at 462 West 58th Street and the Rushmore at 80 Riverside Boulevard, both $1.04.
On the other hand the buildings with highest common charges are: the Cove Club at 2 South End Avenue in Battery Park City with $3.98 per square foot followed by the Baccarat Hotel & Residences at 20 West 53rd Street, at $3.88. The Cove Club is on a land lease since it sits on Battery Park City (the land here is still owned by the Port Authority), this accounts for its comparatively expensive charges; the Baccarat ranks up there because of its ultra-luxury status.
The other three condos with the priciest common charges are Trump International at 1 Central Park West, $3.63; the Beekman at 575 Park Avenue, $3.35; and Helmsley Carlton House at 21 East 61st Street, $3.17.
A way a building can control its costs is through the effort of the members of the board.
More-active boards can stay on top of management companies to make sure they are meeting the building’s goals and find ways to save and also raise money (for example through renting out the amenities to third parties for special events).
Some buildings have even looked to reduce monthly fees by cutting staff, since labor costs — specifically pay and benefits — are typically a building’s biggest maintenance expense, industry professionals said.