The was originally reported on by Property Shark.
The rental market in NYC is primed for change and not everyone agrees on which direction to go. With new landlord/tenant regulations rolling out in June, the rental landscape in NYC could look very different in 10 years. Additionally, air rights (also called development rights) are on the legislative docket. NYC currently has over 1.6 billion unused air rights. Of the five boroughs, Queens currently has the most unclaimed air rights, and being quite suburban, Queens is well positioned for future skyward growth as its population continues to increase.
Although NYC’s air rights can be controversial and extremely complicated at times, they remain a very useful tool for growth. To succeed, developers need to navigate a gauntlet of government regulations, co-op boards, historical designations, and public sentiment. Just last year, a co-op board denied a $54 million offer to purchase their available developmental rights for a two-building condo project.
The New York City Housing Authority (NYCHA) owns roughly 80 million square feet of unused air rights that may be up for sale soon. In addition to selling air rights, the proposed 10-year plan from NYCHA also includes handing over management of approximately 35% of its controlled units to private management companies. The NYCHA has also stipulated that these management companies carry out specific improvements over the next 10 years.
Unsurprisingly, most residential air rights are located on blocks with more green space than the average, even when the buildings reach 18 stories. This means there’s a high amount of versatility in the usage of the air rights, whether they’re sold to adjacent blocks for projects, used within for infill projects, or to maintain views and sunlight by keeping them unused.
