WATCH: A rezoning of Midtown East would be huge for owners at these 5 sites

City proposal would increase the permitted maximum density of office space by about 30%

TRD New York /
Aug.August 31, 2016 10:51 AM

Midtown East may be on the verge of a growth spurt.

City Hall has released a draft proposal to rezone Midtown East, which would allow developers to build to a maximum density of roughly 30 percent more than it currently permitted in the area. The proposal, which would allow taller buildings to be constructed near to Grand Central Terminal, is ultimately an attempt to encourage the development of more office space in the neighborhood.

In order to take advantage of the proposed increase in maximum density, developers would have to purchase air rights from landmarked buildings or contribute money to public infrastructure projects. One Vanderbilt is currently leading the way, with developer SL Green Realty receiving zoning benefits in exchange for buying air rights from the Grand Central Terminal area and providing $210 million toward local subway station improvements.

The proposal specifically targets 16 sites in the area and breaks down how much office space could be gained by the rezoning–the combined potential of these sites is 6.6 million square-feet of office space.

To see the top 5 sites that stand to gain the most office space, watch the video above.

For more videos, visit The Real Deal’s YouTube page.

Related Articles

WeWork co-CEOs Sebastian Gunningham and Artie Minson (Credit: Getty Images, iStock, Twitter)

WeWork lease-signing sinks to five-year low in New York

575 Lexington Avenue (Credit: Google Maps, iStock)

Normandy looks to sell 575 Lex for more than $650M

Clockwise from left: 270 Park Avenue, 1-15 57th Avenue and 57-28 Second Street in Queens and 310 Hudson Street (credit: Wikipedia, Handel Architects, Google Maps)

Behold the largest projects of 2019

A moment from Wednesday's rally (Credit: SEIU 32BJ)

32BJ SEIU could strike if labor agreement isn’t reached in two weeks

(Credit: iStock)

Chicago is the nation’s hottest medical office market

305 East 46th Street (Credit: iStock)

Japanese firm lands $84M financing for Midtown East buy

Clockwise from left: 135 S. Lasalle, 115 S. Lasalle, 400 S. Lasalle (Credit: Google Maps)

Chicago office landlords must solve a 2M sf problem before it’s
too late

In the third quarter of 2019, nine sales totaling $587 million closed in the central business district (Credit: iStock)

Chicago’s ice-cold office market is finally heating up. But don’t get too excited