Highlights:
- Air rights deals in Manhattan are increasing under the City of Yes zoning reforms.
- Landmark owners now have dozens more buyers for unused development rights.
- CRE brokers and developers are welcoming opportunities once considered rare.
We’ve been in New York commercial real estate long enough to see zoning shifts come and go, but nothing compares to the City of Yes plan. Air rights used to be a rare, niche play—one of those transactions we’d maybe see once every few years. They were complicated, slow, and often not worth the effort.
Air rights, formally known as development rights, are the legal ability for property owners to build or use the space above their land. In cities like New York, where space is tight, these rights are highly valuable because they allow vertical growth when horizontal expansion isn’t possible. Development rights can be transferred from one property to another, creating new opportunities for building. However, air rights are still limited by zoning rules, historic preservation laws, and other regulations.
Now? Everything has changed. Since the reforms passed in December 2024, we’ve seen an unprecedented surge in air rights activity, and Manhattan is at the center of it all.
As brokers working with NYCCREA, we’re seeing opportunities multiply swiftly. Air rights aren’t just part of the conversation—they’re shaping it.
Current Developments
- From Scarcity to Pipeline
Our colleagues in real estate and property development have reportedly went from rarely working on air rights to juggling multiple deals at once. The shift is monumental and it is foreseen to keep on bringing impactful deals. - Landmarked Properties Unlock Value
Manhattan’s 1,200+ landmarked buildings are suddenly sitting on monetizable assets—what industry leaders call “found money.” - Expanded Buyer Pool
Transfers can now happen across the street or even at the next intersection, creating far more deal flow than the old adjacent-lot rule ever allowed.
Positive Impacts on Commercial Real Estate
- Stronger Market Liquidity
More transferable rights mean more tradable assets—injecting new energy and flexibility into New York’s CRE market. - Fueling Development & Density
Developers are actively exploring how to build higher and denser, aligning with the city’s ambitious housing target of 500,000 new units by 2032. - Boosting Landmark Sustainability
Landmark owners can finally raise the capital needed to maintain and preserve historic buildings, ensuring they remain long-term contributors to the city’s CRE landscape.
Promising 2025 Momentum with NYCCREA
From our perspective at NYCCREA, City of Yes isn’t just another zoning reform—it’s a market reset. Air rights are no longer a side note. They’re becoming a cornerstone of Manhattan’s commercial real estate strategy.
As we look to 2025, we anticipate the first wave of closings to hit city records, validating what we’re already experiencing in real time. Landmark owners will cash in on long-untapped value, developers will push projects higher, and CRE deal flow will expand in ways that felt impossible only a few years ago.
In short: air rights are the new frontier in Manhattan, and we’re just getting started.
For the latest news, proven strategies, and exclusive opportunities in commercial real estate in New York City and Western Nassau County NY, visit us at www.nyccrea.com
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References:
Air Rights Deals Boom in Manhattan Under City of Yes Zoning Plan, CRE Daily
City of Yes spurs Manhattan air rights gold rush, The Real Deal
