| What it is |
Unused FAR is the difference between the allowed floor area that can be built and the built floor area. This can be a good measure of a site's development potential. |
Air rights are unused development potential above an existing building, which is controlled by the property owner. |
| How it works in NYC |
Unused FAR is the difference between the allowed floor area that can be built and the built floor area. This can be a good measure of a site's development potential. |
In NYC, Air Rights are incredibly important to developers as they allow them to expand their buildings and build what they wouldn’t have been able to before purchasing air rights. |
| When it applies to an owner |
For owners, knowing how much unused FAR they have on their property could be very important in determining if there is much development potential on the site. Developers look for underdeveloped sites that they can develop on, if a building has maxed out the FAR, or is on a lot zoned with a lower FAR, there might not be much development potential. |
Air rights can be the most valuable asset for some property owners who are not interested in developing their properties anymore. They are allowed to sell the air rights to developers who do. |
| How it affects property value or owner decisions |
It can increase a property's value by providing future development flexibility, whether through expanding the existing structure, constructing additional floors, or transferring unused development rights to neighboring properties. |
Air rights can be the most valuable asset for some property owners who are not interested in developing their properties anymore. They are allowed to sell the air rights to developers who do. |
| Common misconception |
For owners, knowing how much unused FAR they have on their property could be very important in determining if there is much development potential on the site. Developers look for underdeveloped sites that they can develop on, if a building has maxed out the FAR, or is on a lot zoned with a lower FAR, there might not be much development potential. |
Many owners assume that air rights are only important if they decide to build upon their properties more. But they can be a great way for property owners to turn their unused building capacity into money |
| Key question an owner should ask |
What is the total FAR allowed on my parcel under current zoning, and how much have I already used? |
Have I had an independent appraisal of my air rights, separate from the offer a developer is presenting me? |
