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Stanley Kubrick-esque movie about New York City development in 2024 might be called "How Developers Learned to Stop Worrying and Love Conversions." The trend, driven by an office glut and housing shortage, shows no signs of slowing down. In fact, the state's approval of a tax break for conversions that make a quarter of units permanently affordable is expected to push more projects forward.
According to TRD Data's tally of the biggest project filings of 2024, office-to-residential conversions took four of the top five spots. Metro Loft's conversion of the Pfizer Building, the largest project of the year, will deliver 1,500 units and add four floors to a 33-story building. Developer Nathan Berman believes the tax break will encourage more conversions.
Other notable projects include Extell Development's 32-story office building at 574 Fifth Avenue, which features three stories of retail space that could potentially be occupied by Ikea; GFP Real Estate's conversion of 222 Broadway into 798 apartments; and Rockrose Development's redevelopment of a former college campus in Brooklyn Heights into 745 units.
The trend also extends to new construction, with projects like Jonathan Landau's 47-story mixed-use development at 205 Montague Street in Brooklyn and Miki Naftali's Williamsburg Wharf Phase 2. The city is also seeing a resurgence in retail, with several major projects filed this year.
In total, the top 10 project filings of 2024 reflect a shift towards residential development, luxury condos, and mixed-use projects. The trend suggests that New York City developers have dug themselves out of last year's rut and are poised for continued growth in 2025.
