What Are Air Rights and How Are They Bought and Sold in NYC?

FAQ on Air Rights in NYC: https://www.hauseit.com/air-rights-nyc/
Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/

Air rights in NYC refer to the empty space above a building or simply an undeveloped lot which may be used for additional development.

The owner of a lot with air rights, also known as unused development rights, could potentially add additional stories to an existing structure or sell her or his unused airspace to an adjacent building which would then be allowed to construct a taller structure by combining the development rights from both lots.

Air rights can be bought and sold through a Zoning Lot Merger of Contiguous Tax Lots, through a Special Zoning District Transfers, and through a Landmark Transfer.

The amount of unused development rights equals the maximum amount of floor area permitted in a zoning lot minus the amount of floor area utilized by the existing structure(s).

The maximum amount of floor area relative to lot size is called the Floor-to-Area Ratio.

For example, if a lot is 5,000 SqFt and the Floor-to-Area Ratio is 5, the maximum buildable square footage is 5,000 SqFt x 5, or 25,000 SqFt.

If the current structure is 10,000 square feet, this means that there are unused development rights of 25,000 SqFt minus 10,000 SqFt, or 15,000 SqFt.

Air rights are determined by applying the Zoning Resolution to a zoning lot. A zoning lot is comprised of a single tax lot or two or more tax lots contiguous for at least 10 linear feet.

The Zoning Resolution and amendments are adopted by the City Council and City Planning Commission in conjunction with other governmental agencies.

New York City is divided into three zoning districts: residential (R), manufacturing (M) and commercial (C).

Each district is further subdivided into low, medium and high density residential, manufacturing and commercial districts.

Zoning districts can be further overlaid by ‘Special Purpose Zoning Districts’ such as the Special Little Italy District in Lower Manhattan.

Another type of zoning district overlay is a ‘Commercial Overlay.’ This is commonly seen in residential zoning districts and it provides for the accommodation of neighborhood retail stores within the zoning district.

Zoning districts, commercial overlays and special purpose districts may be viewed by accessing New York City’s Zoning & Land Use Map (ZOLA): https://zola.planning.nyc.gov/about/

So, how are air rights bought and sold?

The most common and easiest way to buy and sell air rights is to transact with an adjacent property that is contiguous for at least 10 linear feet. This is called a Zoning Lot Merger of Contiguous Tax Lots.

Through this method, the owner of the property with unused development rights sells her or his air rights to a neighboring lot which is contiguous for a minimum of 10 linear feet, located with the same block.

The effect of the zoning lot merger is that the unused development rights may be used in development or enlargement on any portion of the newly merged zoning lot. A zoning lot merger does not require special approval from the city.

It’s also possible to transfer development rights between non-contiguous properties on the same block by through-lot transfers which merge lots for the purpose of allocating Available Development Rights from formerly non-contiguous zoning lots.

There are two other more complicated ways to buy and sell air rights:

Special Zoning District Transfers

The sale and transfer of development rights in Special Zoning Districts is permitted between lots which aren’t contiguous. Examples of special zoning district transfers include:

Transfer of development rights from listed theaters in the Theater Subdistrict of Special Midtown District, subject to CPC certification, authorization or special permit

Special West Chelsea District (High Line Corridor), pursuant to as-of-right procedure at DOB with required notice to and review by Department of City Planning

Landmark Transfers

Under a Landmark Transfer, a Landmarks Preservation Commission designated site may sell development rights to another property, and there is no requirement for both sites to be contiguous.

For example, a landmarked building may sell its development rights to a building across the street or down the block.

How Much Do Air Rights Cost in NYC?

Air rights in NYC range from $200 to $400 per square foot, but this is negotiable and pricing varies by location and project. Air rights in prime Manhattan neighborhoods with a scarcity of unused development rights can be $400 per square foot or more.

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
.
.
Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
_
#hauseit #hauseitnyc