Move over, condos: developers are gobbling up the city’s air rights for office projects.
A new report from Tenantwise has found that people are buying more air rights for offices than for residential condominiums for the first time in years, according to the New York Post. In 2017, the average pricing for office air rights reached $315 per square foot, which was its highest in history.
JPMorgan Chase, for instance, is paying in the $300s for development rights at its Midtown expansion at 270 Park Avenue. Air rights for office developments were cheaper in Hudson Yards last year, however, going for an average of $235 per square foot.
The City Planning Commission unanimously approved selling development rights to West Chelsea property owners for $625 per square foot in February, and The Real Deal estimated in August that selling 3.6 million square feet of air rights could deliver landlords in Midtown East just under $900 million over the next two decades. [NYP] – Eddie Small