Less Developable NY Property Requires More Innovation
Law360, New York ( August 1, 2014, 8:15 AM EDT) -- With less developable property available in Manhattan, developers have had to become more innovative in their quest for acquisitions that will provide a rate of return that makes economic sense to pursue. Some of that innovation has resulted in broadening development to neighborhoods in outer boroughs that were previously off the grid as undesirable, unattractive, unfashionable and, in some instances, viewed as simply unsafe. Some of that innovation has resulted in developers looking at deals that they would never previously have considered because of potential problems in developing the property. As an example, there are sometimes problem tenants in buildings that are otherwise in good locations and have the potential, if vacated, to allow a tear-down or to be able to build up because of the availability of excess floor area ratio and air rights....
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