The Race for Manhattan's Rarified Air

Buoyed by a recovering real estate market, and a race to build the tallest and most exclusive residential towers in the city, Manhattan is experiencing a surge in air-rights deals. Robin Finn explores the nuances of this complex market.

2 minute read

February 23, 2013, 7:00 AM PST

By Jonathan Nettler @nettsj


Established by New York City with 1916 and 1961 zoning regulations, the sale of air rights, or transfer of development rights (T.D.R.'s), "have become the reigning currency of the redevelopment realm, major components in the radical vertical transformation of [New York City's] skyline," writes Finn. "With Manhattan’s skyscraper-proof bedrock in finite supply and the city’s fixation on housing and envelope-pushing office buildings on the upswing — and also the impetus behind the proposed rezoning of 70 blocks around Grand Central Terminal called Midtown East — the sky is not only the limit, it’s the solution."

"These days developers don’t just tailor their blueprints to the lot they own: they often annex, for fees that can run into the multimillions, the airspace above and around their property," he explains. "The process, essentially an invisible merger of building lots that tranlates [sic] into taller, heftier towers with increased profitability, is emerging from a minislump dictated by the economy."

“The trading of air rights is more prevalent than it’s ever been before,” said Robert Von Ancken, an air-rights expert and appraiser who is the chairman of Landauer Valuation and Advisory Services, “and it’s why you’re seeing these monster buildings springing up all over town. All of these new supertowers that are changing the look of the city’s horizon, they couldn’t happen without air-rights transfers.”

But the explosive trend in building as high as possible isn't without its hazards. “Is the future of the city going to be this series of 200-story towers with stultified buildings in between?” asks Robert A. Jacobs, a land-use specialist and partner at Belkin Burden Wenig & Goldman. “You wonder how this will affect the street life, the trees. You wonder about urban plazas surrounded by 50-story walls: what would grow there, mushrooms?”

Friday, February 22, 2013 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 25, 2025 - Diana Ionescu

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Map of Western U.S. indicating public lands that would be for sale under a Senate plan in yellow and green.

Map: Where Senate Republicans Want to Sell Your Public Lands

For public land advocates, the Senate Republicans’ proposal to sell millions of acres of public land in the West is “the biggest fight of their careers.”

June 19, 2025 - Outdoor Life

Two-story buildings with porches in walkable Florida neighborhood.

Orange County, Florida Adopts Largest US “Sprawl Repair” Code

The ‘Orange Code’ seeks to rectify decades of sprawl-inducing, car-oriented development.

30 minutes ago - CNU Public Square

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1 - Honolulu Civil Beat

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1 - KQED

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.