Developer’s Digest?: This Week's Top Development News
2025 Report Tallies Permits for Nearly 53,000 New Residential and Hotel Units Filed in Previous Year
February 6, 2025
In 2024, NYC developers filed 2,744 new building permits totaling over 71 million square feet, adding nearly 53,000 residential and hotel units. While overall permit filings declined from 2023, Queens led in filings, while Brooklyn had the highest unit count. The trend shifted towards fewer but larger residential projects. Staten Island saw the steepest drop in permits and units. High-rise developments increased slightly, with a 68-story tower at 613 Madison Ave as the tallest. Floor area filings showed declines in smaller projects but growth in larger ones. Manhattan maintained the highest average floor count, while Brooklyn saw the most significant high-rise activity.
Source: New York YIMBY
NYC’s Real Estate Market Is Going From ‘Defense to Offense’ in 2025
February 5, 2025
New York City’s real estate market saw a 26% rise in investment sales in 2024, reaching $28.3 billion. Office sales surged 63% to $5.43 billion, boosted by return-to-office trends. Development transactions increased 53% to $5.52 billion, while multifamily sales grew 14% to $8.9 billion. Affordable housing remained limited, accounting for just 8% of dollar volume. With a record-low 1.4% vacancy rate, housing shortages persist. However, initiatives like City of Yes rezoning and the 485x tax incentive could improve affordability. Experts predict more transaction volume and price recovery in 2025, shifting the market from “defense to offense.”
Source: Commercial Observer
City Plots Next Ideas for Former Amazon HQ2 Site
February 5, 2025
Amazon abandoned its Long Island City HQ2 site in 2019, leaving the area largely undeveloped. Mayor Eric Adams’ administration plans to release a request for expressions of interest (REFI) in spring 2025 for 44-36 Vernon Boulevard, a 672,000-square-foot warehouse occupied by the Department of Education. The city seeks proposals for commercial, light industrial, and community uses. Nearby city-owned parking lots may also be redeveloped. Long Island City is undergoing a broader rezoning effort, aiming to allow more high-rise housing and mixed-use development. The rezoning review is set to begin in spring, potentially revitalizing the area.
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Source: The Real Deal
Council Targets Local Law 97 Energy Credits ‘Loophole’
February 7, 2025
New York City Council members Carmen De La Rosa and Lincoln Restler are introducing a bill to tighten Local Law 97, restricting property owners from using Renewable Energy Credits (RECs) to offset more than 10% of excess emissions. The law mandates buildings over 25,000 sq. ft. to reduce emissions, with penalties for noncompliance. Critics argue the bill creates additional financial burdens, while supporters say it prevents corporations from avoiding green upgrades. The real estate industry strongly opposes the restrictions, while climate-focused groups support them. The City Council remains divided, with debates ongoing on balancing environmental goals with economic feasibility.
Source: Crain's New York Business
Developer’s Crown Heights Rezoning Plan Under Fire for Casting Shadows on Basketball Courts
February 7, 2025
A proposed rezoning in Brooklyn’s Crown Heights is facing opposition due to concerns about shade and gentrification. Bridges Development Group plans to replace a single-story garage at 73-99 Empire Boulevard with a 13-story, 250,000-square-foot mixed-use building, including 261 residences (one-third affordable) and 98,000 square feet of commercial space. Residents fear the building will cast shadows on local play areas and be unaffordable for locals. Community Board 9 rejected the plan, and Brooklyn Borough President Antonio Reynoso will soon issue a recommendation before the City Planning Commission and City Council decide its fate.
Source: The Real Deal