As tenants are vacating, rents are being discounted and property values decline throughout New York City, owners are finding alternative ways to make their property work for them. One of the more lucrative opportunities occurs when a property owner taps into unused or excess development rights—a commodity that can be transferred from neighbor to neighbor. (There are some limitations on where development rights can be transferred. One limitation, for example, is that the receiving site of the excess development rights has to be located in the same zoning district (or a zoning district that has the same floor area ratio) as the granting site.)

The ideal scenario resembles winning the jackpot. You are enjoying nice quality time with your family when you receive a phone call and hear, "Hello, my name is Mr. Deep Pocket Developer, and I understand that you own the property located at 123 XYZ Street. I've been informed that your property has 100,000 square feet of air rights. I would like to buy them from you." Phone drop! OK … back to reality since that is not happening to 99% of property owners.