New York badly needs all the housing it can get, and the city has been particularly busy with larger-scale projects.
In fact, the OneLIC Neighborhood Plan, which was most recently approved by the City Planning Commission and awaits a final vote from the New York City Council, marks the third major one in the past month to advance in the metro. The ambitious goal is to bring 14,700 new homes to Long Island City.
Then you add Midtown South and the Jamaica Neighborhood Plan, which could all together with OneLIC deliver more than 36,000 new homes to NYC.
AN OPPORTUNITY FOR DEVELOPERS TO TAKE ADVANTAGE
Jodi Stein, partner in Sheppard Mullin's real estate, energy and land Use & environmental practice, said that these projects will represent a big opportunity for developers to get involved.
"One of the great things about these three particular neighborhoods is that they're so transit-rich, she, who works in the firm's New York office, emphasized to GlobeSt.
"They're ready for development. They're ready for density. They can take on the density, and people want to live near transit. It's great for live [and] work. It makes an easy sell for residential development."
She added that a wide range of developers will be able to get involved, partially crediting the City of Yes initiative, which moved the zoning approval process away from discretionary to more of a ministerial one.
TACKLING THE HOUSING SHORTAGE
Mitch Korbey, chair of the Land Use & Zoning group with Herrick, praised the transit fundamentals where each of the plans are located as well, while also speaking more about the approvals and how they can help tackle NYC's housing shortage.
"City Planners and independent research by outside economic consultants have demonstrated that we must build 50,000 housing units a year, just to keep pace with the demand," he explained.
"By rezoning areas of the City that do not permit housing today, such as Midtown South and LIC, we are removing manufacturing zones that are no longer viable, having outlived their usefulness to the City – and we are stimulating the conversion of older office buildings and the development of new, sorely needed housing."
Plus, Korbey pointed out that the affordable housing in the three projects, accounting for about 11,100 of the total units, will help lower-income residents.
In the future, Stein thinks these developments could set the stage for even more five-figure housing developments in NYC. "Because the city is allowing for this kind of density, developers are going to take it," she said.
STRONG APPETITE FOR CRE DESPITE MAMDANI UNCERTAINTY
Despite Zohran Mamdani's upset win in the Democratic Mayoral Primary, which has caused some uncertainty in the market, Stein still sees strong demand for CRE. Particularly, she noted that it's been what she calls a "race" to get in on manufacturing, as the city is considering legislation to regulate the last mile. Plus, she gives credit to the City of Yes for helping spur development appetite.
"Whether it's leasing or developing, people are wanting to get vested," Stein revealed.
While it might be more likely than not that Mamdani, who has campaigned on freezing rents, will be the next Mayor of Gotham, it appears the real estate community isn't panicking yet and heading to conclusions, according to Stein. Voters will decide on November 4.
But until then, NYC developers will wait for the City Council to give the final approval to OneLIC and the Jamaica Neighborhood Plan and weigh potentially getting involved in those big plans. Meanwhile, Midtown South has already been green-lighted.
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