Quote:
Originally Posted by mhays
So land is in fact cheaper in the "valley." Hence one of my original points.
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Only because the zoning allows for less FAR. The land has less value for the developer to extract, so he's not willing to pay as much - but that's purely because of the
zoning, not because there is less
demand.
If you upzoned this area, you'd see the land values skyrocket beyond those of Midtown on a per-acre basis. In the long run, I suspect they'd decline again because the new construction would shatter the character of the neighborhood and because much of the demand would be sated.
The reason this area is so desirable is because it is the anti-Midtown. It has the same efficient grid of streets but the building scale is much more human, there's a lot more prewar, desirable building stock, and the streets are less crowded due to the reduced density. Since zoning prevents the area from adding much in the way of square footage, values per-square-foot are astronomical. That's why Jamestown is spending hundreds of millions to cantilever a building over the Chelsea Market when it will only provide 330k SF, and why virtually every new building in the neighborhood is the product of a superstar architect.