Permits & development · Deals & development · 10/20/2026
Broker Says Some NYC Site Owners Should Rezone Before Selling
Robert Knakal of BK Real Estate Advisors says NYC's development site market is rebounding, with more buyers, including Brooklyn, Queens and Bronx developers, seeking Manhattan sites. He says the Department of City Planning appears open to larger rezonings than expected, so some owners may gain by rezoning before selling. He warns that affordability requirements can sharply cut land value.
Reported by Commercial ObserverRead the original ↗
What happened
Commercial Observer published an opinion piece on October 20, 2026 by Robert Knakal, founder, chairman and CEO of BK Real Estate Advisors. He argues that New York City's development site market is rebounding. Based on deals his team tracks, he expects development site sales volume this year to rise more than 30 percent compared with 2025. He says the actual statistics are not yet available.
As an example, Knakal points to a Chelsea development site his firm is marketing. He says it has drawn more than 80 offers, the most his team has seen on a single development site since 2015. He says pricing has reached about 15 percent above the firm's original high-end expectations. He also reports more established developers from Brooklyn, Queens and the Bronx trying to buy smaller Manhattan sites for their first projects there.
Knakal says the Department of City Planning appears open to rezonings. In several cases, he says, it has seemed willing to consider more added density than his team expected. Because of this, his firm is advising some owners to pursue a rezoning before selling. He notes that rezoning is never guaranteed and takes time, money and carries uncertainty.
He also warns that more density does not automatically mean more value. In certain neighborhoods, he says, land values for sites with affordable housing requirements differ from those without them by close to 50 percent. He says mandatory affordability can strongly affect projected revenue, financing and land value.
Key facts
- Outlet
- Commercial Observer (opinion piece)
- Date
- October 20, 2026
- Author
- Robert Knakal, founder, chairman and CEO of BK Real Estate Advisors
- Sales volume forecast
- More than 30 percent increase this year versus 2025 (author's projection, not final data)
- Chelsea site offers
- More than 80 offers, the most on one development site since 2015, per the author
- Chelsea site pricing
- About 15 percent above the firm's original high-end expectations
- Agency
- Department of City Planning, described as receptive to potential rezonings
- Affordability gap
- Land value differences approaching 50 percent between sites with and without affordable housing requirements, in certain neighborhoods
What it means
Buyers and owners
Owners of possible development sites may get strong interest right now. The author suggests some should weigh a rezoning before selling, but that path has cost, time and no guarantee.
Landlords
Small owners whose lots could hold more building should check what affordability rules would apply before assuming a rezoning adds value. The author says those rules can cut land value sharply in some areas.
Tenants and voucher holders
The piece focuses on land sales and does not discuss tenants. Any rezoning with affordability requirements could eventually add income-restricted units, but the article gives no project, unit or income details.
The highlights
- Author expects 2026 development site sales to rise more than 30% over 2025.
- A Chelsea site drew 80+ offers, about 15% above the high-end price estimate.
- Land values can differ by nearly 50% where affordable housing is required.
Why it matters Landlords
Small owners of buildable lots may get more by weighing rezoning and affordability rules before they sell.
What to do: Check what a rezoning and affordability rules would mean for your site before selling.
Not known yet
- The Chelsea site's address, size and sale price
- The final sales volume statistics the author says are coming
- Which neighborhoods show the near 50 percent land value gap
- Which specific rezonings City Planning is considering and how much added density is involved
Background
In New York City, rezonings that change what can be built on a lot usually go through the Uniform Land Use Review Procedure, known as ULURP. That process involves the local community board, the borough president, the City Planning Commission and the City Council. When a rezoning adds significant residential capacity, the city's Mandatory Inclusionary Housing rules generally require a share of new apartments to be permanently income-restricted. Those affordable units are typically marketed through the city's housing lottery.
Summary written by Bulwark from Commercial Observer’s reporting. The original story is at commercialobserver.com. This is general information, not legal advice.
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