Bonanza for Real Estate Developement in Manhattan

Bonanza for Real Estate Developement in Manhattan

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East Midtown Rezoning

The East Midtown rezoning proposal was certified by the City Planning Commission on April 22. It now begins a 7-month Uniform Land Use Review Procedure (ULURP) that begins with review by the local community boards, followed by the Manhattan Borough President, the City Planning Co...mmission and finally the City Council. Here are some key numbers in this proposal:

• 70 million – the amount of square feet of office space in East Midtown

• 14.5 million – the total amount of square feet of new development to result from the East Midtown Rezoning Proposal (broken down below)

• 10 million – the amount of square feet of existing space to be replaced with new development resulting from the East Midtown Rezoning Proposal

• 4.5 million – the amount of square feet of additional development resulting from the East Midtown Rezoning Proposal

• 1.35 million – the amount of unused development rights from Grand Central

• 250,000 – the number of jobs in East Midtown

• 40,000 – the minimum square foot site size with 200 feet of wide street frontage to build to the highest FAR within the Grand Central Core

• 25,000 – the minimum square foot site size with 200 feet of wide street frontage to build using the higher as of right FAR

• $250 – per square foot cost of the District Improvement Bonus (DIB )for additional floor area above base
• 80 – the percentage of office stock in East Midtown over 50 years old

• 73 – the average age of office buildings in East Midtown

• 67 – the number of New York City Landmark-eligible and/or State/National Register-eligible historic resources identified in East Midtown and surrounding study area.

• 65 – the number of office buildings that are overbuilt by current zoning standards

• 20 – the proposed extended width in feet of sidewalks along Madison and Lexington Avenues to improve pedestrian network challenges

• 20 – the number of potential development sites in East Midtown

• 19 – the number of projected development sites in East Midtown

• 15 – the minimum percentage by which buildings utilizing DIB must outperform the current NYC Energy Conservation Code

• 14 – the number of Fortune 500 companies in East Midtown

• 13 – the existing width in feet of sidewalks along Madison and Lexington Avenues

• 5 – the approximate percentage of total office space built in East Midtown over the last 20 years

• 2 – the number of new office buildings constructed in East Midtown in the last decade
• 07/01/17 – the earliest date that building permits for Qualifying Sites can be issued

Any questions call M. S. Strauss-Cassel 1-212-702-4027

As you can see just because of these changes being considered and the anticipation by insiders about these fantastic news a boon in construction in Manhattan is clearly anticipated.

A commercial and office space zoning revision that will permit the remodeling of some buildings "considered historic" or under high restrictions, will permit an entire revamping of the stock of office spaces, bringing in new technology, higher internet connections speeds, and with it, a more sophisticated work force that earns a greater salary.

In calculating prices in a market such as Manhattan you always need to add these factors that are unique to this city. Manhattan is an Island, there is no more land, and the only place to go is up. Up means more people, more people means more demand for things, more demand means higher prices, higher prices means more revenue and values for our beloved market.

Of course it is simplistic to just explain why the Manhattan market will appreciate based on demand. It is a lot more than that. Vertical structures are so much more efficient that horizontal structures and that is reflected in the prices institutions are willing to pay to be cozy crowded in Manhattan. These high concentrations, are responsible for the greatest intellectual efficiency, New York is known for, plus many, many tax advantages that should be copied world-wide.

This article was produced by Michael Strauss-Cassel with all rights reserved.
You may reproduce this information partially by paraphrasing the source and the author.

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Michael Strauss-Cassel - Strauss-Cassel.com + Civitex.com (the project….. is coming).

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