The rezoning is expected to further spur investment sales activity in the Bronx, which saw dollar volume increase by 13% to $445 million across 90 transactions for all asset classes in the first half of 2024 compared to the second half of 2023, according to Ariel Property Advisors’ Bronx 2024 Mid-Year Commercial Real Estate Trends report .

Development sales accounted for approximately 37% of the transaction volume in the borough in the first half of this year, which is a new record for the Bronx. A total of 33 development site transactions closed in H1 2024 totaling $166.4 million, which marked a 50% and 86% increase, respectively, compared to H2 2023. The average price per buildable square foot in the Bronx reached $110 in the first six months of 2024, a new high for the borough, but the lowest pricing among New York City’s boroughs.

The Bronx Metro-North Station area rezoning, recently approved 485x tax abatement, Mayor Eric Adams’ City of Yes proposal and relatively low basis for new construction projects should further increase development activity in the borough. Specifically, we anticipate these policies will encourage development in the neighborhoods targeted in the rezoning–Parkchester, Van Nest and Morris Park–which since the beginning of 2023, only saw one development transaction at 883 Bryant Avenue. However, it’s too soon to tell if the rezoning will increase pricing metrics throughout the East Bronx.

Compared to the South Bronx neighborhood of Mott Haven, which has seen tremendous growth in both affordable and market rate units over the last 10 years, development has lagged in the East Bronx. Together Districts 9, 10, and 11 in the East Bronx built a total of 2,145 affordable housing units between 2014 and 2022, which is about half of the 4,169 affordable units constructed over this period in District 1 in the South Bronx.

The rezoning approval came after six years of public collaboration with in person and virtual workshops, small group meetings and surveys. The city worked alongside local elected officials and community stakeholders such as medical and educational institutions, as well as federal and state officials to finalize the rezoning plan.

At the request of local City Council members, the Bronx rezoning plan added a parking mandate and approximately $500 million of investments in public amenities and infrastructure including:

• A new public plaza at the Morris Park station with enhanced pedestrian crossing along Eastchester Road.
• The surrounding areas of the Morris Park and Parkchester/Van Nest stations will feature improved pedestrian safety, transportation access, and traffic circulation with intersection and streetscape improvements.
• Enhancements to public parks and open spaces, including renovations to the following parks: Castle Hill Playground, Bufano Park, Pelham Bay Park Ballfields #4 and #5, Taylor Playground, Virginia Playground, Loreto Playground and Brady Playground.
• Drainage infrastructure upgrades in order to mitigate flooding.
• School facilities to be upgraded at PS 102, PS 106, Linden Tree, Archer Elementary, PS 12, MS 127 and PS 138.

One key component of the rezoning is transforming areas currently dominated by auto-oriented businesses, such as auto repair shops, into residential developments. The objective is to provide safer and more active pedestrian corridors for easy access to the new Metro-North stations. This is particularly evident in the three main transitional areas being rezoned for residential use. These areas, located to the east of the proposed Parkchester station along East Tremont Avenue and to the north and south of the Morris Park station, are currently zoned R4, R6, C8-1, and M1-1. They will be rezoned to R6A, R6-1, and R7-2 to support higher-density housing.

“The Bronx is saying ‘yes’ to more housing in our backyards, communities, and neighborhoods, and serving as a model to the rest of our city on how to lead from the front,” Mayor Adams said in a press release. “With our administration’s neighborhood plans and our ‘City of Yes’ proposal, we have a once-in-a-generation opportunity to build our way out of this housing shortage and affordability crisis.” Mayor Adams called on City Council members to join this fight and “build more and make this city more affordable.”

Overall, the Bronx Metro-North Station Area Plan represents a significant step towards revitalizing the Bronx, creating new opportunities for housing development, jobs and economic growth.

The New York City Council approved the Bronx Metro-North Station Area Plan to rezone a 46-block area surrounding four plan ned Metro-North stations coming to Hunts Point, Parkchester/Van Nest, Morris Park and Co-op City by 2027.