Developer’s Digest®: This Week's Top Development News
City Of Yes Zoning Overhaul Approved By Council, Clearing Path To 80,000 New Units
December 5, 2024
New York City Council approved the "City of Yes for Housing Opportunity" zoning reform with a close vote of 31-20. The measure marks the first citywide zoning update since the 1960s and aims to address the housing crisis by allowing up to 80,000 new units. Intense debate preceded the vote, reflecting concerns about parking mandates, neighborhood preservation, and safety. A $5 billion funding package for infrastructure and affordability was pivotal in securing the agreement. Mayor Eric Adams heralded the victory as essential for tackling NYC's housing shortage and building 500,000 homes over the next decade.
Source: Bisnow
New Dev Delivers One of Decade’s Strongest Novembers
December 4, 2024
November saw robust activity in New York City's new development market, with 246 contracts signed—the third-highest for the month in the past decade. Manhattan led with 126 contracts, a 37% increase year-over-year, featuring a $3.3 million median sale price. Brooklyn followed with 96 contracts, a significant rise from 53 last year. Luxury properties performed strongly, including deals over $10 million and a record $54.4 million unit at 50 West 66th Street. Queens saw a decline, with only 21 contracts compared to 29 last year. Overall, demand surged across boroughs and price points.
Source: The Real Deal
Plans Filed for Two Residential Buildings at SoHo’s 30-32 Thompson Street
December 6, 2024
Plans have been filed for two residential towers at 30-32 Thompson Street in SoHo. Developed by Extended Management and designed by Fogarty Finger, the project includes a 26-story, 77-unit building at 32 Thompson and a 23-story, 21-unit structure at 30 Thompson. The combined development will cover over 250,000 square feet. The sites were acquired for $13 million and $8.8 million in previous years. This development highlights ongoing efforts to bring high-density housing to one of Manhattan’s most sought-after neighborhoods.
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Source: Commercial Observer
Cayre Equities Buys Garment District Office Building, Eyeing Self-Storage Conversion
December 5, 2024
Cayre Equities plans to convert a 16-story office building at 254-258 West 35th Street in Manhattan’s Garment District into self-storage. Purchased for $16.2 million, the 106,000-square-foot building previously belonged to the Tekiner family, who faced legal disputes over real estate sales. Converting office buildings to self-storage is a quicker, cost-effective alternative to housing. Cayre has experience in self-storage development through its Treasure Island Storage brand, reflecting a broader trend in adapting underused office properties to meet shifting market demands.
Source: The Real Deal
Here’s How Much Empty Office Space Is Costing New York City
December 3, 2024
New York City faces a record-high office vacancy rate, with 105.8 million square feet empty, resulting in $7.6 billion in lost rent. The shift to hybrid and remote work has hit NYC harder than other metros, highlighting a cultural shift in workplace norms. While some suggest converting office spaces into housing, the process remains complex. Overbuilding and changing office demands add to the challenge, and the city's future depends on adaptive policy decisions to address these vacancies and revitalize urban spaces.
Source: Biz Journals