Transferable Development Rights Calculator

TDR enables building height/density transfer between properties.

TDR quantity (SF)

Per-SF receiving value

TDR premium over sending %

Transaction cost %

Net TDR value

$19,000,000

Gross TDR value

$20,000,000

Net value per SF

$380.00

How the math works

Gross = TDR SF × receiving value. Net = gross − transaction cost.

50k × $400 = $20M gross − 5% = $19M net. $380/SF net value.

How to Use

Enter TDR quantity (SF).
Enter per-SF value at receiving site.
Enter TDR premium (over sending value) %.
Enter transaction cost %.
Read TDR transaction value.

Frequently Asked Questions

What are TDRs?

Transferable Development Rights: unused zoning capacity (height, density, FAR) from one property (the 'sending site') transferred to another ('receiving site'). Used to preserve historic buildings, protect open space, redirect development. NYC has most sophisticated TDR market. Other markets: Washington DC, San Francisco, Seattle, portions of CA, NJ. Farm-to-city TDR programs also exist (rural preservation funds urban development).

TDR pricing?

Receiving site value − sending site remaining value = TDR economic value. NYC midtown: $200-800/SF of TDR rights. Washington DC Penn Quarter: $150-400/SF. SF Union Square: $300-700/SF. Premium to sending site because TDRs effectively 'activate' receiving site value. Transaction cost: 3-8% of TDR value (legal, appraisal, zoning approval). Complex negotiations; experienced zoning attorneys essential.

How do TDRs create value?

Sending site: cashes out unused zoning capacity. Historic building owner: gets market value for unbuildable rights. Receiving site developer: gets additional buildable SF. City: preserves landmark, grows urban fabric. Win-win-win in theory. In practice, complexity drives costs and delays. TDR banks (NYC, others) pool rights for easier transfer. Institutional investors increasingly participate in TDR markets.

When TDRs make sense?

For landmark property owner: unlocks value of unusable zoning (e.g., historic landmark can't grow but has FAR rights). For developer: when market demand justifies taller/denser building than base zoning allows. TDR transfer more valuable than rezoning when: rezoning politically infeasible, TDR available nearby. In soft markets: TDRs cheap. In boom markets: scarce, expensive. Timing matters.