Air Rights in Commercial Real Estate Project Development: Due Diligence, Drafting Considerations for Buyers and Sellers

This CLE webinar will provide an overview of key legal challenges and strategies for structuring commercial real estate transactions where access to air rights is imperative to project development or transactions in which air rights are bought or sold separately from the land. The panel will examine important due diligence and drafting considerations for buyers and sellers and offer best practices for mitigating the risk of future disputes.

In crowded cities where land on which to develop commercial real estate is becoming scarce, air rights—a property owner's right to the vertical space above a property—are more important than ever. Air rights can impact the value of the land in the transaction and how the property may be developed. Air rights may also be bought and sold separately from the land in a variety of transaction types that may transfer air rights to adjacent and non-adjacent properties for their own project development needs such as through transferable development rights. 

For developers, understanding the limits on air rights development is a crucial part of due diligence before entering any transaction in which the ability to build upward is key as the use must comply with existing zoning regulations such as height or density restrictions. Developers should also be aware of potential issues, such as conflicts over obstructed views and potential boundary disputes, and how the risks of these issues may be mitigated when negotiating the transaction's terms and conditions to prevent project delays and possible litigation.

Listen as our authoritative panel examines air rights in commercial real estate project development. The panel will discuss due diligence considerations and key provisions for buyers and sellers to mitigate risk of future disputes.