The Manhattan multifamily market remained strong in Q4 2014, with asking rents reaching a record high and absorption remaining positive, though vacancy rates increased. Sales volume was also high at $9.9 billion for the year, with average prices per unit up 21.7% year-over-year. Employment growth in New York City slowed slightly compared to 2013 but the unemployment rate fell significantly. Forecasts predict the market and economy will continue expanding in 2015.

1. ARBOR.COM • 1.800.ARBOR.10
Manhattan Multifamily Report
Q4 2014
The Manhattan multifamily market
remained strong during the fourth quarter
of 2014, as asking rents increased and
absorption was positive alongside
increasing vacancy rates.
The average asking rent in Manhattan
reached $4,162/unit, a 3.4% increase over
the Q4 2013 average of $4,025/unit and
the highest quarterly average on record.
According to forecasts provided by Reis,
the asking rent is expected to increase at a
4.5% during 2015, although grow at a
slower rate during the following four years.
The vacancy rate in the market finished the
fourth quarter at 2.9%, up from the 2.6%
rate reported during the third quarter and
2.3% one year ago. Vacancy has been
increased steadily since the most recent
low of 1.9% during Q1 2013 and forecasts
project the rate to reach 3.5% by the end
of 2015.
Net absorption remained positive during
the quarter, at 2,333 units, up from 2,265,
in Q3 2014 and 1,721 in Q4 2013.
Absorption is expected to maintain pace
with new development and remain
positive over the next 12 months.
A total of 777 new multifamily units were
added to the Manhattan market during Q4
2014, the highest quarterly total since mid‐
2012. There were 1,845 units added during
2014, up from 1,520 during 2013 and
representing 1.6% of the existing
inventory.
According to Reis forecasts, 3,844 units are
expected to be completed by the end of
2015. Through 2019, 15,465 units are
expected to be completed, representing
13.5% of the existing inventory.
Rental Market
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
$3,000
$3,300
$3,600
$3,900
$4,200
$4,500
4Q09 4Q10 4Q11 4Q12 4Q13 4Q14
Average Asking Rent ($/Unit) Vacancy (%)
Asking Rent and Vacancy
Manhattan, Multifamily
Source: Arbor, Reis
0
800
1,600
2,400
3,200
4,000
4Q09 4Q10 4Q11 4Q12 4Q13 4Q14
Net Absorption (Units) Completions (Units)
Absorption and Completions
Manhattan, Multifamily
Source: Arbor, Reis
4Q14 3Q14 4Q13
Total Inventory (Units) 114,965 114,188 113,120
Average Asking Rent ($/Unit) $4,162 $4,157 $4,025
% Change 0.1% 3.4%
Average Asking Rent ($/SF) $51.59 $52.10 $51.41
Vacancy Rate (%) 2.9% 2.6% 2.3%
Net Absorption (Units) 2,333 2,265 1,721
Completions (Units) 777 95 166
Source: Arbor, Miller Samuel, Reis

2. 2ARBOR.COM • 1.800.ARBOR.10
Manhattan Multifamily Report
Q4 2014
Sales volume for multifamily properties in
Manhattan totaled $9.9 billion during
2014, more than the $9.3 billion in sales
recorded during 2013 and the highest
annual total since reaching $10.6 billion
during 2006. During Q4 2014 alone, sales
totaled $2.7 billion, down from the Q3
2014 total of $4.4 billion.
The average price paid for multifamily
properties jumped to $449,174/unit during
the quarter, a 21.7% increase over the
$369,000/unit average paid during the
fourth quarter of 2013.
The 12‐month average cap rate for
Manhattan was 4.1% at the end of the
quarter, compared to 4.3% one year ago.
Looking forward, Thor Equities’ $800
million purchase of the Caiola family’s
800,000‐square‐foot rental portfolio will
have a dramatic impact on Q1 2015
multifamily sales volume, and it remains to
be seen if Blackstone’s purchase of GE
Capital Real Estate’s holdings will have an
effect on capital in the multifamily
investment market.
Top Countries of Origin
Source: Arbor, Real Capital Analytics
Top Buyers
Properties
Volume
($ Millions)
Canada 12 $1,026.4
Japan 2 $113.7
UK 2 $112.3
China 2 $110.5
Israel 5 $102.1
Kuwait 1 $98.3
Brazil 1 $32.0
Properties
Volume
($ Millions)
Thor Equities 38 $1,352.8
HFZ Capital Group 5 $1,113.4
Brookfield Asset Mgmt 5 $917.3
SL Green 24 $773.9
Rainbow Estates Group 73 $599.9
Clipper Equity 2 $591.6
Cammeby's Int'l Group 12 $579.7
March 2014 to March 2015 March 2014 to March 2015
Sales Market
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
4Q09 4Q10 4Q11 4Q12 4Q13 4Q14
Sales Volume ($, Billions) Sale Price ($/Unit)
Sales Volume and Price
Manhattan, Multifamily, $2.5 Million and Larger
Source: Arbor, Real Capital Analytics
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
4Q09 4Q10 4Q11 4Q12 4Q13 4Q14
Average Cap Rate (%)
Average Cap Rate
Manhattan, Multifamily, $2.5 Million and Larger, 12‐Month Weighted Average
Source: Arbor, Real Capital Analytics

3. ARBOR.COM • 1.800.ARBOR.10
New York City employment increased by
107,000 jobs during 2014, a 2.6% increase,
although slightly lower than the 121,000
jobs that were added during 2013.
Employment in the U.S. overall increased
by 2.3% for the 12 months ending in
December 2014.
The unemployment rate for New York City
reached 6.2% in December 2014, down
from 7.8% one year ago and the lowest
rate since October 2008.
The unemployment rate for the U.S.
overall fell to 5.6%, down from 6.7% year‐
over‐year.
According to forecasts from Moody’s,
economic growth in the New York
metropolitan area will accelerate in 2015,
thanks to a vibrant high‐tech sector and
steady demand for office space,
particularly in Manhattan and Brooklyn.
Economic Overview
‐5.0%
‐2.5%
0.0%
2.5%
5.0%
Dec‐09 Dec‐10 Dec‐11 Dec‐12 Dec‐13 Dec‐14
United States New York City
Employment Growth
Total Nonfarm, 12‐Month Percent Change
Source: Arbor, U.S. Bureau of Labor Statistics, New York State Department of Labor
Unemployment Rate
Labor Force Statistics
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
Dec‐09 Dec‐10 Dec‐11 Dec‐12 Dec‐13 Dec‐14
United States New York City
Source: Arbor, U.S. Bureau of Labor Statistics, New York State Department of Labor
3
Submarket Summary
Source: Arbor, Reis
Inventory
(Units)
Vacancy Rate (%) Average Asking Rent ($/Unit)
4Q14 3Q14 4Q13 4Q14 3Q14 4Q13 %Chg(Q) %Chg(Y)
Midtown West 26,983 4.5% 3.2% 3.7% $4,245 $4,269 $4,160 ‐0.6% 2.0%
Morningside/Washington Hts 8,519 1.7% 1.9% 2.1% $2,431 $2,402 $2,404 1.2% 1.1%
Stuyvesant/Turtle Bay 22,845 3.0% 3.2% 2.2% $4,457 $4,442 $4,060 0.3% 9.8%
Upper East Side 16,446 1.0% 0.6% 0.5% $3,925 $3,906 $3,915 0.5% 0.3%
Upper West Side 16,458 3.9% 3.9% 2.2% $4,663 $4,647 $4,506 0.3% 3.5%
West Village/Downtown 23,714 2.1% 2.0% 2.3% $4,221 $4,218 $4,174 0.1% 1.1%
Manhattan 114,965 2.9% 2.6% 2.3% $4,162 $4,157 $4,025 0.1% 3.4%

4. ARBOR.COM
1.800.ARBOR.10
About Us
Founded by Chairman and CEO Ivan Kaufman, Arbor Commercial Mortgage, LLC and Arbor
Commercial Funding, LLC are national direct lenders specializing in loan origination and
servicing for multifamily, seniors housing, healthcare and other diverse commercial real
estate assets. Arbor is a 2013 Top 10 Fannie Mae DUS® Multifamily Lender by volume, a
Freddie Mac Program Plus® Seller/Servicer and Small Balance Loan lender, an FHA
Multifamily Accelerated Processing (MAP)/LEAN Lender, a HUD‐approved LIHTC Lender as
well as a CMBS, Bridge and Mezzanine lender, consistently building on its reputation for
service, quality and flexibility. With a current servicing portfolio of more than $11 billion,
Arbor is a primary commercial loan servicer and special servicer rated by Standard & Poor’s
and holds an Above Average rating from Standard & Poor’s. Arbor is also on the Standard
& Poor’s Select Servicer List and is a primary commercial loan servicer and loan level
special servicer rated by Fitch Ratings.
Arbor Commercial Mortgage, LLC also manages Arbor Realty Trust, Inc., a real estate
investment trust, (REIT), formed to invest in mortgage‐related securities, real estate‐
related bridge, junior participating interests in first mortgages, mezzanine loans, preferred
and direct equity investments and in limited cases, discounted mortgage notes and other
real estate related assets. Arbor is headquartered in Uniondale, NY, with full‐service
lending offices throughout the United States. For more information about Arbor,
visit www.arbor.com.
For Further Information Contact:
Matt Maison
Director, Research and Analysis
Arbor Commercial Mortgage, LLC
375 Park Avenue, Suite 3401
New York, NY 10152
T: 646.963.6352
mmaison@arbor.com
The research contained in this report should not be construed as a solicitation to and/or
trade. All opinions, news, research, analyses, prices or other information is provided as
general market commentary and not as investment advice; all information is subject to
change. Arbor, its members, shareholders, employees, agents and representatives do not
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