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Air Rights Sale Calculator

Air rights sales monetize unused development capacity above existing buildings.

$
$
%

Net proceeds

$19,200,000

Gross sale value

$20,000,000

Transaction cost

$800,000

How the math works

Gross = unused FAR × $/sqft. Net = gross − legal − broker fee.

50k × $400 = $20M. − $200k legal − 3% × $20M ($600k) = $19.2M net.

How to Use

  1. Enter unused FAR (sqft).
  2. Enter $ per sqft air rights value.
  3. Enter receiving site premium %.
  4. Enter legal/transfer cost.
  5. Read net proceeds.

Frequently Asked Questions

Air rights basics?

Zoning often limits buildings to a Floor Area Ratio (FAR). Owner who hasn't built to max FAR has unused 'air rights' = development capacity. Transfer of Development Rights (TDR): sell unused FAR to adjacent (or designated receiving zone) developer who wants to exceed their site's FAR. Common in: NYC, SF, Chicago, LA, Seattle, Boston. Small landmark buildings sell to skyscraper developers.

Air rights value?

NYC Midtown/Downtown: $300-1,500/sqft air rights. Hudson Yards area peak: $650-1,000/sqft (2015-2019). SF Financial District: $150-500/sqft. Chicago Loop: $50-200/sqft. Boston Back Bay: $100-400/sqft. Receiving developer pays premium (vs new ground-up construction economics). Seller captures: value without building. Huge monetization for right assets — small landmark building selling $50-200M air rights common.

Legal considerations?

Zoning district must allow TDR. Covenants + easements recorded against sending site (cannot later exceed remaining FAR). Landmark designations may mandate TDR availability (preservation incentive). Receiving site contiguity: adjacent parcels typically eligible. Non-contiguous: some cities allow via designated receiving zone. Attorneys + surveyors + zoning consultants: $50-500k transaction cost.

Process timeline?

(1) Due diligence on unused FAR (property survey, zoning analysis). (2) Identify receiving developer (adjacent or designated zone). (3) Negotiate price + terms ($/sqft air rights). (4) Legal documentation: zoning lot description, covenant. (5) Approval from planning/building dept. (6) Close + transfer. Timeline: 6-24 months. Complex but can yield massive monetization for appropriate sellers.

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