Many New York City co-op and condo boards don’t realize their buildings are sitting on a hidden source of revenue: unused air rights. Thanks to the City of Yes legislation and recent rezonings, demand for transferable development rights is surging in 2025—creating a major opportunity for boards that act now.
Key Highlights
Air Rights Market Booming: Transfers are on pace to rise 39% this year—the strongest activity since 2016—with broker Bob Knakal predicting final totals will triple last year’s levels.
City of Yes Changes Everything: The legislation expanded how air rights can be sold, especially for split districts, landmarked properties, and developers needing more flexible zoning envelopes.
Beyond Next-Door Transfers: Air rights are no longer limited to adjacent parcels. Developers can now buy from properties several blocks away, broadening the buyer pool.
Landmarked Properties Win Big: Owners can now sell rights across an area nearly 10 times larger than before—expanding from two or three potential buyers to as many as 30 or 40.
Exclusive Focus at BKREA: Genessy Jaramillo, Managing Director at BKREA, is spearheading air-rights deals, noting: “It’s on fire. It’s a no-brainer to be in this niche right now.”
Opportunity for Boards: While developers and brokers are driving the surge, most co-op and condo boards remain unaware of their selling potential—missing out on millions in untapped value.
Frequently Asked Questions
What exactly are air rights?
A: Air rights, or transferable development rights, allow property owners to sell unused vertical building capacity to developers who need it elsewhere.
How did City of Yes change air-rights sales?
A: It broadened transfer zones, eased restrictions on landmarked and split-district properties, and introduced more flexible zoning rules.
Why are landmarked buildings seeing more interest?
A: Developers can now shop for landmarked air rights from a far wider area, making those properties far more valuable.
How can co-op and condo boards benefit?
A: By working with brokers who specialize in air-rights transfers, boards can unlock significant new revenue streams without altering their buildings.
Who is leading in air-rights transactions?
A: Top brokers like Bob Knakal and the BKREA team are mapping, calling, and closing deals for institutions, public companies, and private owners alike.
