The Real Deal New York

Developers’ mad dash for land is driving prices sky high

April 29, 2013 01:15PM

Property prices are reaching record highs as developers make wild bids to claim available land, Crain’s reported. Eastern Consolidated, for example, had a client that lost out on a West 77th Street site when a competitor bid nearly 50 percent over the original price, insiders said.

“There is a scarcity of good development land in Manhattan,” Peter Hauspurg, Eastern Consolidated’s chief executive, told Crain’s. “Pricing has almost now doubled from the peak of 2007.”

Developers now pay $700 to $800 per square foot available for construction, Crain’s reported. They tend to go into more modest neighborhoods, looking for vacant sites or buildings that can be quickly torn down. [Crain’s]Mark Maurer