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Mayor Eric Adams’ City of Yes plan is transforming how landmarked properties in Manhattan generate revenue. Since its passage in December 2024, interest in air rights—or transferable development rights (TDRs)—has surged, with Bob Knakal, Chairman and CEO of BKREA, currently working on 17 active deals. The plan dramatically expands the geography for TDR transfers, removing key barriers that had previously stalled the market for decades. Now, brokers say, a dormant asset class is finally coming alive in one of the world’s most valuable real estate markets.
A: Transferable Development Rights allow owners of landmarked buildings (who can’t build higher) to sell unused floor area to nearby lots that can use the additional space.
A: Previously, air rights could only transfer to directly adjacent lots. Now, they can move across the block, street, or to the nearest intersection—dramatically expanding buyer pools.
A: Manhattan has the highest number of landmarked buildings and the highest land values, making air rights more valuable and deals more attractive.
A: Many are in contract or negotiation. Developers often secure air rights during planning stages, so closings may lag but activity is clearly increasing.
A: A path to build higher or larger projects—up to 20% more floor area in many cases—without rezoning, while supporting landmark preservation.
A: Yes. Air rights sales provide capital for landmarked owners to fund repairs, upgrades, or maintenance—turning idle rights into real dollars.