Posted by Leonard Steinberg on April 24th, 2014

At last something to report on in New York that is actually cheap: AIR. Yes, the cost of air rights – also known as transferable development rights – are averaging $305/sf in 2013 compared with the $207/sf average in 2012…..up 47%, yet still a bargain compared to as-of-right FAR square footage where costs seem to be approaching $ 900-1,000/sf in areas.

More importantly with air rights dedicated mostly to the higher floors of building where pricing is at its maximum, buying air rights also makes for the most profitable sales by far…..if you are paying $ 850/sf for your lower floor buildable square footage and you are selling those floors for $ 3,000/sf, the profits are far lower than for the high floors where the cost of the buildable square footage (air rights) is $ 300/sf and you can sell those for $ 5,000+/sf.

Bottom line:  We have found something in New York that is affordable……in fact, New York air is a BARGAIN!