In this edition of the Community, we’re going to tackle some questions about Air rights.
Air rights refer to the legal ability to occupy the vertical air space above a plot of real estate. It’s a relatively new thing, but has proven to be incredibly valuable in both commercial and residential cases. In any transaction, it’s worthwhile to look into air rights for a property.
How do you put air rights to work? It might make sense to talk to a neighbor and see if they are willing to sell the air rights above their property to protect a view for your clients. This encompasses any empty space above a property, everything from the upper stories of a high-rise building to power lines.
Developers can buy air space with or without buying the building on ground level to increase a space’s property value.
When someone buys residential or commercial real estate, they’re also buying the air rights above the land’s square footage that they can use as they desire. In most cases, the airspace of a building can be used in any way the property owner sees fit, as long as the height of their structure complies with zoning laws and building codes of the particular zoning district.
This is from MasterClass:
“The boundaries of any new development or existing building cannot encroach upon an adjacent property that you do not own the rights to. Transferable Development Rights (TDRs), can be used to sell the space above any unused development property to another property owner. Air rights don’t extend into navigable airspace which is regulated by the Federal Aviation Administration (FAA); often this is a minimum of 1,000 feet above the highest obstacle in congested areas.
How to Secure Air Rights
There are two ways of securing the air rights to a property, which include:
Purchasing the property: If a developer wants to build a 72-story building where a 2-story building currently stands, they can buy that building, knock it down, and build a new structure that maximizes the air space how they want to.
Transferable Development Rights: If a developer wants to purchase the air space above an already-existing building — either to build out horizontally from an adjacent building, or to preserve a view — they can secure Transferable Development Rights to the space by buying the air space above that building from the existing owner.”
We try to think of every way we can to help as you grow your business. Whether it’s commercial or residential, air rights might help make the difference in a sale.