Air Rights + Construction Costs

Air rights, which is a complicated concept, can go for as much as $600 a buildable square foot (Christ Church on Park Avenue) but may average about $200. In 2015, the developers of the Dream Hotel paid the owners of the Neil Simon theatre $450.00 a square foot for their air rights (CO 8/5/15). Extell paid $475.00 a square foot for the Helen Hayes Theatre's air rights at 1710 Broadway in the fall of 2016, with Howard Hughes' paying $438 at the same time for their South Street site (TRD 12/16). Real Estate Weekly reported on October 25th of 2017 that the City Planning Commission was proposing that Chelsea air rights be sold at $500.00 a square foot....with the current average being $297.00 a square foot.


Construction Costs
It costs $362.00 per square foot to build a new building in New York City (TRD 7/18). That would be the most expensive in the world...


Residential Condominium Prices per square foot
The average price per square foot for a new residential (Manhattan) condominium in February of 2017 was $2,209 (RD 2017 DB). The median price for all Manhattan apartments (co-ops and condos) was reported to be $900,000 (C 1/9/17( which is down quite a bit from the previous year ($1.2 million REW 1/16/16), with the average price for a Manhattan apartment hitting $2.05 million during the first quarter of 2016 (TRD 4/16). Co-ops are often much lower in price, and averaged at $1,178.00 a square foot. The most expensive condos that have recently sold went for more than $8,000 psf (at One 57 and close to that at 432 Park Avenue / the record sale for 2016 was PH 96 at 432 Park Avennue, which sold for $87.7 million, or $10,623 a square foot)).

The most expensive sales per square foot for a very limited number of apartments are approaching $10,000 (REW 1/11/17). 15 CPW #38A traded for $9,838 psf on 6/23/16. The highest deals per square foot at One 57 were realized for the 82nd floor, which traded for $8,990 a square foot, and the PH, which sold for...$100 million, or $9,090 a square foot (in January of 2015). Other benchmark sales have included 150 West 26th Street: $7,574, 15 CPW: $7,238, 25 Columbus Circle: $5,526, 18 Gramercy Park: $5,072, 1 Bond Street: $4,966, 421 Hudson Street: $4,745, 100 CPS: $4,368, 400 West 12th Street: $4,227 and at number ten... 132 East 65th Street: $4,164...212 Fifth is currently asking between $2,500 to $4,500 a square foot, which is probably a good range for comparison...(REW 9/16/15).


Residential Rental Buildings
In 2016, the average price for a rental apartment in Manhattan was $3,999 (REW 9/14/16). The average "luxury" rental in February of 2016 went for an astounding $9,962 per month (TRD 4/16). There is currently an excess of inventory, according to some rental brokers. although overall vacany rates are at 1.42%. The average studio rental was $2,675. For a one bedroom: $3,350. For a two bedroom: $4,647. For a three bedroom: $5,500. For NEW Developments, the average studio rental (January 2017) was $3,200, for a 1 bedroom $4,062, for a 2 bedroom $6,283 and for a 3 bedroom $14,667) (TRD 1/17). As long as rent control and rent stabilization remain, these high rental prices will be unlikely to go down.

 

Manhattan Parking Spaces
In March of 2017 a garage package went on sale with spaces going for $65, 326. The Commerical Observer (3/1/17) reported that spaces can sell for up to $175,000...which is no
surprise. Parking spaces rent from $350 up to $1,500 per month in prime residential neighborhoods. The city limits the number of new garage spaces that can be built / included in new buildings, which is why spaces cost so much.

Longstreet & Associates Inc Licensed Real Estate Brokers and Consultants Equal housing / office and retail space for all 59 East 54th Street, Suite 64, New York, NY 10022 212-980-6285 WalterLDeane@aol.com