In Midtown South, a promising housing initiative is on the horizon, marked by proposed rezoning across 42 blocks. The focus is on transforming manufacturing zones into residential areas, potentially bringing forth a wave of thousands of new housing units over the next decade.

Midtown South’s office market has experienced a shift, with demand from TAMI (technology, advertising media, and information) tenants declining, leading to an oversupply of office space. This context underscores the importance of repurposing these spaces to meet housing needs.

The proposed plan’s volume hinges on the state legislature’s decision regarding the 421a property tax break, which is crucial for making multifamily housing financially viable. While the rezoning plan aims to address the city’s housing needs, it’s important to note that challenges remain, particularly concerning the conversion of older office buildings into housing, as, despite potential tax incentives, the complexities of these conversion projects present significant hurdles to address.

(source: therealdeal.com, picture: Fabien Bellanger)