NYC: Expect Increased Density, Taller Buildings in Transit-Rich Neighborhoods

NEW YORK CITY—At the Real Estate Board of New York’s annual event honoring commercial property management professionals, Marisa Lago set forth priorities for the city’s current urban planning. In her keynote speech, the director of the New York City Department of City Planning and chair of the City Planning Commission described how she envisions the city’s handling the housing and workspace demands to sustain continued future growth.

Lago pointed out that currently the Big Apple is home to 8.5 million people and 4.5 million jobs, both all-time highs. From 2010 to 2017 the city added 600,000 jobs—which exceeds the total number of jobs in the entire city of Boston. “But while our growth poses opportunities, it also poses challenges,” she added.

Topping her concerns are the needs to build more housing, including affordable housing and to create space for jobs. She called as-of-right development the workhorse of housing and job spaces. “Since 2010 over 80% of new housing in the city has been built as-of-right. Without this development about 300,000 New Yorkers, an entire city of Pittsburgh, wouldn’t have the homes that they live in today,” said Lago.

As-of-right development complies with all applicable zoning codes. It does not require special public hearings, permits, variances or discretionary action by the City Planning Commission or Board of Standards and Appeals.

The city is focused on increasing residential density in transit-rich neighborhoods. It has been encouraging mixed-used neighborhoods in a focused way for the past two decades, according to Lago. That was underway long before the Amazon HQ2 beauty contest. “Amazon or no Amazon, Long Island City remains primed to take off,” she added.

Lago is pushing to create tall buildings in transit-rich neighborhoods. She pointed out in 2017, only 18 buildings 40 stories or higher were constructed. They accounted for only 1% of new residential buildings completed. But they accounted for 22% of new housing units.

She also said it’s a misconception that the city only upzones in low income neighborhoods. “Since 2015, fully 36% of new housing construction has occurred in the 25% of neighborhoods with the highest median incomes,” said Lago. “The city is absolutely committed to fair housing giving folks opportunities where they choose to live in our diverse city.”

Lago opined zoning must be updated from manufacturing zones of the 1960s which also often required a sea of parking. The zones were created during the era of automobiles and suburbanization. Today zoning needs to better reflect contemporary uses. She pointed to the rezoning of the Garment District as a successful accomplishment involving a broad coalition of stakeholders. She further stated that zoning must support housing and mass transit in regions in New Jersey, Connecticut and Long Island, NY as areas the city has traditionally relied upon to house its workforce.

Finally, Lago urged audience members to oppose the proposal to add a citizenship question to the 2020 Census. She stated this would threaten the full count of New York City’s population. She explained that this would impair getting fair representation in the US House of Representatives as well as an equitable distribution of federal dollars.

“We are a city that has always been shaped by immigration. One-third of New Yorkers are foreign born,” said Lago adding that statistic crosses the 50% threshold in Queens. “Over 60% of us have at least one parent who was born outside of the US. We have to get the word out that it is essential to be counted.”

She encouraged audience members to be active in opposing the Census citizenship question working with their houses of faith, communities and neighborhoods.

At the event, REBNY presented 10 awards, honoring commercial property management professionals. CBRE’s Louis Trimboli was recognized as the Commercial Management Executive of the Year.

As shown in the above photo with REBNY officers, the award winners were honored at the event.

Back row (L-R): Paimaan Lodhi, REBNY Senior Vice President; Luis Lopez, The Paramount Group, Inc., Porter of the Year; Anthony R. Migliore, Jr., Empire State Realty Trust, John M. Griffin Community Service Award Winner; Drew O’Connor, Cushman & Wakefield, Inc., Portfolio Manager of the Year; Alex Riveira, Silverstein Properties, Inc., On-Site Manager of the Year; Gaston Silva, Vornado Realty Trust, REBNY Management Division Board of Directors Co-Chair; Jeffrey Dietz and George Leary, Rudin Management Company’s 3 Times Square, Best Engine Room Award Winners.

Front row (L-R): Louis Trimboli, CBRE, Inc., Edward A. Riguardi Commercial Management Executive of the Year; Patrick Duffy, The Rockefeller Group, Security Professional of the Year; Lela Doherty, Vornado Realty Trust, Rising Star of the Year; Joseph Brigante, The Durst Organization, Small Building Engineer of the Year; Nicholas Ricigliano, SL Green Realty Corp., Large Building Engineer of the Year; John H. Banks, REBNY President.

The REBNY 16th Annual Commercial Management Leadership Breakfast was held at the New York Hilton Midtown on Thursday, May 30, 2019.