Christopher Milito Quoted on New York Real Estate Regulations to Watch in 2018

January 10, 2018 – Morrison Cohen partner Christopher Milito  is quoted in Law360 on New York initiatives and zoning changes that were announced or went into effect that area real estate lawyers will be closely monitoring in 2018 (“New York Real Estate Regulations To Watch In 2018”, January 1, 2018).

Chris commented on new zoning that will allow owners to transfer air rights not only to adjacent properties but also between any two properties in a zone in Midtown East, with additional revenue from the transfers to upgrade subways stations and make other improvements:

"I think it's a great plan. ... Grand Central and St. Patrick's, they could use the money," said Christopher Milito of Morrison Cohen. "I hope that the market for the air rights gets very active. Getting the land here in Midtown East is not such an easy thing. There are lots of towers already."

But still, the change may take some time to play out, according to Milito. One issue is that modernizing buildings in Midtown East will require developers to charge higher rents, which introduces an element of risk, lest they not be able to land or keep tenants to pay the higher rents.

And developers may have their work cut out putting together the parcels necessary to do their projects under the new zoning laws, Milito said.

"In order to get sites in this area that are worth building at, there's going to have to be a very quiet and covert assemblage process, which will not be making headlines in the first half of 2018," Milito said.

"It's anybody's guess," Milito added, speaking about how long it will take developers to take advantage of the new zoning. "That's going to be the story to watch in 2018."