"Ultra Luxury" Rentals Feel The Pain in NYC

Browne estimated the high-end rental market is down 10 to 15 percent since late 2015. He said that one of his clients, who'd been getting $19,000 to $20,000 a month for his two-bedroom at 40 East 66th Street, agreed to discount the condo to $18,000 .

It's also taking longer to do deals. Douglas Elliman's Tal Alexander recently used "light staging" on a $20,000-a-month rental at One57, which still took about 60 days to rent. Alexander said he's telling clients that overpricing is a waste of time. "If [renters] see the apartment linger, they think it's more negotiable."

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Yet, the balance of power is no different in the overall rental market, where agents said supply continues to far outweigh demand, putting pressure on landlords to entice tenants. "There's a boatload of inventory," said Citi Habitats' Rory Bolger. "These landlords think if you build it they will come, but sometimes you wonder: Where are they coming from?"

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Citi Habitats' Dave Maundrell said his team is launching five new buildings in the next two weeks -- including 371 Humboldt Street in Williamsburg and 248 Duffield Street in Downtown Brooklyn. All five are no-fee with one month of free rent, which is now par for the course in new development.

Maundrell said he thinks landlords are coming to grips with reality after months of pressure to drop prices and offer concessions. "There's a lot of product that wasn't really worth what people were asking for it," he reflected.