In a city that thrives on the mantra, “Go big or go home,” nowhere is this as apparent as the development of new construction in Manhattan. The biggest critic of the Manhattan real estate development is, not surprisingly, none other than the business itself. In an industry where the indicators of success each fiscal year is judged by how much taller, more extravagent and expensive this year’s projects are compared to the last, 2011 has been criticized as a less-than-stellar year for new construction. Both DNAinfo.com and The Real Deal recently reported that “new constructions in New York City saw a 31 percent decline last year.” Never one to be easily alarmed or fazed by popular headlines, the New Construction Manhattan Blog decides to take a second look at the data and offers a second opinion on the current affairs.

What’s the difference between a luxury condo and luxury rental in Manhattan? These days, barely anything. The average size of a 1-bedroom luxury rental in Manhattan is 600-675 square feet, while the average size of a 1-bedroom luxury condo in Manhattan is 700-800 square feet. The units in 8 Spruce Street in FiDi and Silver Towers in Midtown West are newly constructed luxury rentals that are indistinguishable from newly constructed luxury condos and subsequently attract wealthy buyers who would’ve only considered condos before; Silver Towers in particular was originally going to be a luxury condominium. This trend is no accident; the uncertain economy has made developers antsy about the future, leading them to adopt the strategy of designing luxury buildings in Manhattan that could convert easily from rentals to condos or vice versa. Consequently, these newly constructed luxury buildings have made the distinction between the two thinner than ever.

Most of us don't think too hard (or at all) about zoning laws in Manhattan, unless we’re developers. That’s why we often know nothing about the regulations that literally shape the face of the Manhattan. Zoning is an all-encompassing subject that touches every aspect of new development, and it has done so for over a century. So what are the zoning rules that regulate new condo construction Manhattan? Anyone? Well, here’s a starting point to understanding our current situation: for 50 years, the basic structure of New York’s zoning laws installed by then Mayor Robert Wagner has remained the same. Currently, numerous neighborhoods such as the East Village and East Harlem are overhauling the details their zoning laws in order to accommodate new condo construction in Manhattan, but even with these changes, the basic structure of zoning laws remains untouched. A panel of planning experts met last week to discuss whether or not that structure can be improved, and the consenus was that our zoning laws are badly in need of change.

A small enclave in the northern reaches of the Upper East Side, Carnegie Hill is in many ways unlike any other neighborhood in New York City. Next to Central Park, quiet streets full of limestone rowhouses and pre-war co-ops are home to some of Manhattan’s most powerful residents, all of whom desire to claim this historic section of the Upper East Side as theirs. Yet Carnegie Hill wasn’t always like this; until Andrew Carnegie built his now-landmarked mansion on Fifth Avenue and 91st Street in 1901, much of the area was farmland. In turn, wealthy New Yorkers built their estates in the surrounding blocks, in doing so creating one of Manhattan’s most architecturally-significant neighborhoods. With the arrival of the subway a decade later, Carnegie Hill’s expansion continued at an even more rapid pace.

At New Construction Manhattan, we’re huge fans of the High Line, but it’s great to hear that it might have a little competition on the East River. The two-mile-long East River Waterfront Esplanade that runs from the Battery Maritime Building to Montgomery Street opened on July 14 and is quickly becoming a hit. The park has features similar to the High Line, but they are in no way the same. While the High Line is a raised park, the Esplanade is located underneath FDR Drive, providing shady spots on hot summer days.