Understanding the Midtown SouthRezoning (MSMX): What NYC OwnersNeed to Know
New York City is entering one of its most significant land use shifts in decades. The newly
adopted Midtown South Mixed-Use (MSMX) Rezoning Plan dramatically changes what can
be built across a 42-block section of Midtown.
At Raffi Group PLLC, we are already advising clients on how these changes shape
development strategy, buying and selling decisions, and long-term asset planning. Below is a
clear breakdown of what the MSMX rezoning means for property owners in 2025 and beyond.
What Is the Midtown South Mixed-Use Rezoning?
The MSMX plan replaces outdated manufacturing zoning with a modern mixed-use
framework that encourages:
● Housing development
● Office-to-residential conversions
● Higher density
● More flexible commercial use
This is designed to reactivate underused office spaces and bolster affordable housing.
NYC Planning – Midtown South Mixed-Use Map
Key Zoning Changes
1. Higher FAR & Increased Density
Residential FAR now ranges approximately 15–18, depending on sub-district, significantly higher than prior allowable FAR.This creates opportunities for:
● Vertical expansion
● Larger multifamily development
● Air rights value appreciation
● Adaptive reuse of outdated office stock
2. Mandatory Inclusionary Housing (MIH)
The rezoned districts fall under MIH rules.
Developers must either:
● Include affordable units, or
● Contribute to city housing funds
This impacts:
● Financial modeling
● Project design
● Timing
● Developer obligations
3. Streamlined Office-to-Residential Conversions
The rezoning is tailor-made for conversions.
However, legal hurdles still apply:
✔ Tenant relocation plans
✔ Changes to Certificates of Occupancy
✔ DOB inspections
✔ Zoning and bulk compliance
✔ Facade and life-safety upgrades
Conversions are now easier, but still require meticulous planning
Who Benefits Most from MSMX?
Property Owners
Values may rise based on additional development potential.
Buyers & Investors
More flexibility = more opportunity.
Developers
Unused office stock becomes prime redevelopment material.
Neighborhood Businesses
A larger residential base supports local economic growth
NYC Planning MSMX Rezoning
Areas of Legal Risk to Consider
Any rezoning of this scale presents challenges
● Air rights disputes
● Construction litigation
● Landmark building restrictions
● Tenant disputes during conversions
● DOB and zoning compliance issues
● Complex financing due diligence
Our firm mitigates these risks early so projects move forward efficiently.
How Raffi Group PLLC Helps Clients Navigate Rezoning
We advise on:
● FAR & development rights evaluation
● Property acquisitions & due diligence
● Rezoning impact strategy
● Office-to-residential conversion planning
● Tenant & occupancy matters
● DOB & HPD compliance
● Negotiating with city agencies
● Contract drafting & deal structuring
The Midtown Rezoning Is a Turning Point — Position Yourself Strategically
If you own property in Midtown or surrounding areas, now is the time to understand how these
changes impact your building’s potential and valuation.
