Daily Archives: June 10, 2017

By Marc Weider, Anchin, Block and Anchin

In New York and other dense urban areas, space is an increasingly precious commodity.

Here are some of the trends developers are embracing as they search for solutions to address the scarcity of land for development.

Cantilevered Buildings

Most developers are familiar with the practice of transferring air rights that is, the right to build or develop in the airspace above a property.

If zoning laws permit it, acquiring air rights from nearby owners who dont plan to use them allows a developer to build higher than zoning restrictions would otherwise allow. Generally, taller buildings command higher resale values, particularly on the upper floors, boosting the developers return on investment.

Going taller isnt always an option, though. A planned building may already be at the legal limit. Or, even if its possible to acquire additional air rights, the developer may be concerned about the risk that the city will impose new height restrictions down the road. In recent years, an increasing number of developers have maximized their spaces (and increased their profitability) by acquiring the right to cantilever their buildings over adjacent properties. Cantilevered buildings offer a variety of benefits: For example, they allow developers to extend their horizontal spaces beyond the constraints of the buildings footprint and to add value by expanding apartment layouts, improving views, and bathing units in natural light.

In addition, cantilevered buildings use a sort of inverted pyramid approach, which enhances value: Floors get bigger as one goes higher, where space is more valuable.

Developers considering this strategy should be sure to work with financial and legal advisors who have experience with air rights and land use issues.

Cantilevered structures can be expensive and challenging to build. And valuing air rights (values can be 60 percent or more of comparable land values) and negotiating their transfer is a complex process. Missteps can lead to costly surprises.

For example, if the transfer isnt negotiated and documented thoroughly and precisely, theres a risk that the seller will retain rights that can interfere with the buyers plans.

And buying air rights from condo buildings can be tricky, because typically it requires the approval of each unit owner.

Converting older buildings

Another strategy developers are using to tap new sources of developable space is to convert existing buildings such as schools, hospitals or churches into residential, retail, or mixed use properties.

The availability of these buildings is on the rise, as struggling schools and houses of worship close and health care facilities close or are consolidated.

Other possibilities include banks, movie theaters, warehouses, government buildings, industrial facilities, parking garages, and fire stations.

Many of these buildings boast historic or distinctive architectural features and unique structural elements such as high ceilings, large windows and skylights, unusual building materials, and unconventional layouts that lend themselves to intriguing residential and retail spaces. Plus, these buildings are often located in desirable neighborhoods.

Converting these types of buildings also presents several significant challenges that require the assistance of experienced advisors.

In addition to the architectural and engineering challenges associated with such a conversion, there may be zoning, land use, historical preservation, building code, and other regulatory issues, as well as potential environmental obstacles. Hospitals, schools, and industrial buildings, for example, may contain hazardous substances that require remediation. And certain conversions, churches in particular, may be controversial in the community.

Micro-Units

Most developers focus on the luxury market and strategies for expanding spaces. But theres a burgeoning trend toward micro-units studio apartments as small as 300 square feet or less but with high-quality amenities that appeal to the relatively untapped market of young singles who want to stay in the city.

This trend has yet to take off, and many developers are skeptical about the profitability of micro-units. But based on the enthusiastic response to the first micro-unit buildings to hit the market in New York, this strategy may be worth a look. Rent per square foot for micro-units is substantially higher than that of larger apartments, and developers can maximize their profits by squeezing many units into a relatively small space.

Of course, in most cases renters can get more for their money by sharing apartments with others, but many young people are willing to trade space for privacy.

So far, there hasnt been much interest in micro-unit condos, but that may change. Were beginning to see a market for these units among young professionals looking to buy on their own, parents seeking alternatives to the dorm for their children in college, and people looking for a piedterre.

Be Creative

As developers confront the challenges of a dwindling supply of developable space, these and other trends may offer solutions. To remain competitive, developers must be creative and push the boundaries of traditional development strategies.

Read more from the original source:

Space exploration: The solutions to land scarcity - Real Estate Weekly

By Dr. Jyotika I. Virmani June 7, 2017

Both space and ocean exploration can boast world firsts, extreme risks, unknown challenges and mind-boggling discoveries that captivate our imagination and advance our understanding of our world and, fundamentally, of ourselves. So why does space exploration and research capture our collective attention and imagination more than ocean exploration and research?

The answer to this question has remained elusive for ocean professionals and enthusiasts alike. A case can be made that until the mid-20th century the oceans held an equal, if not a greater, fascination for the general public as compared to space. What changed? A frequently given reason for this shift in public interest is the 20th century space race, which triggered greater funding for space exploration and resulted in greater outreach. Added to this, space is generally considered to be more exciting and more visible; people need simply to look up into the night sky and see billions of stars and imagine the vast possibilities. Conversely, the oceans remain psychologically distant from the human mind (e.g. Schuldt et al., 2016), only directly visible to those who live along or visit a coast; even then, most people just see the sea surface the wonders that lie beneath remain hidden. But are these the only reasons?

For decades, the ocean community has worked to engage the public in ocean issues by, for example: highlighting the potential solutions for food security or pharmaceutical discoveries; raising the alarm over the damage we are causing and the long-term consequences to our own livelihoods; and making it more relatable by emphasizing the human connection. Some progress has been made but the fact still remains that space, although inaccessible for the majority, is more appealing to the general public than the oceans. Consequently, given the magnitude of discoveries waiting to be made, ocean exploration and research are generally underfunded. This can clearly be seen through a number of metrics including social media, which can be used as a proxy for the level of interest by the public. For example, search engines show at least four times as many hits on space exploration versus ocean exploration (e.g. Schubel, 2016) at any given time.

Lets take a deeper look at how weaving the human element into a narrative makes the story more appealing and relatable for people. In November 2011, NASA launched the Mars Curiosity Rover, a mission that successfully landed a robot 54.6 million kilometers from Earth, on Mars, in August 2012. This phenomenal achievement made front-page news globally and, with each new finding, continued to generate massive global interest. At approximately the same time, in March 2012, James Cameron, one of the worlds best known movie directors, personally embarked on an extremely dangerous mission to the bottom of the Mariana Trench (approximately 11 kilometers deep and approximately 300 kilometers from the nearest land). As the third person in human history to do this (Jacques Piccard and Capt. Don Walsh made this journey for the first time in 1960), it was an incredible testament to human achievement. In one example, we have a robot on a daring mission of exploration and discovery. In the other example, we have a very famous person on a daring mission of exploration and discovery. Both showcase the sense of adventure and human achievement. Yet the epic journey by Cameron is not as well-known (a Google search shows 251,000 hits for James Cameron reached Mariana Trench) compared to the Mars Curiosity journey (a Google search shows 446,000 hits for Mars Curiosity Rover landed). Clearly, the ingredients for a compelling and memorable story are more complex than the human element alone.

As an ocean community, we should continue to talk about the importance of issues such as conservation and protection, but to reach a broader audience there are lessons we can learn from the space community. We should take these to heart and turn the tide on ocean communication. And perhaps, as space becomes more commercialized and easier to access, the space community can take lessons from the recent experiences of the ocean community. By inspiring the public we shape public perception, which in turn influences policymakers and, more practically, changes funding levels. We need to embark on a Quest to Inspire the Public about the oceans for the sake of everyone.

The Author

Dr. Jyotika Virmani is Senior Director for Planet & Environment at XPRIZE and prize lead for the Shell Ocean Discovery XPRIZE. Dr. Virmani has over a decade of professional experience in oceanography. She has a Ph.D. in physical oceanography.

References

Schubel, J. R., 2016, Positioning Ocean Exploration in a Chaotic Sea of Changing Media. National Ocean Exploration Forum, October 20-21, 2016

Schuldt, J. P., K. A. McComas, and S. E. Byrne. 2016, Communicating about Ocean Health: Theoretical and Practical Considerations. Phil. Trans. R. Soc. B 371: 20150214. http://dx.doi.org/10.1098/rstb.2015.0214

Tversky, A., and D. Kahneman, 1981, The Framing of Decisions and the Psychology of Choice. Science, 211(4481): 453-458. doi: 10.1126/science.7455683

Weiss R. K., and A. Cochrane, 2010, Days of Future Past: Film Visions of Space Exploration, Commercialization and Tourism. IAC-10.E5.3

Woodman, J., 2016, Just Waiting to be Discovered: Finding Hope in Earthbound Mysteries, IEEE Earthzine

Link:

Ocean vs Space: Exploration and the Quest to Inspire the Public - Marine Technology News