PRICING OUTDOOR SPACE
Private outdoor space in New York City is a luxury to say the least. Whether you're peering over from your balcony to buzz up the delivery man, sipping your morning coffee on your terrace, watching the sunset from your rooftop cabana or grilling shrimps in the garden with your friends – a balcony, terrace, cabana, or garden space is just about as "outdoorsy" as it gets in NYC. This month we decided to feature the value of those additional square feet of that connect you to the great outdoors in NYC.
How do you put a price on outdoor space? Would you consider it real living space, and what would you be willing to pay for it?
Pricing outdoor space is determined by a number of factors. First you should analyze the use of the space, the design, the size, if there are any views, if it is public or shared, and where it is in proximity of the apartment. Private terraces are often priced higher than shared terraces in a building. Being able to walk out on a Juliet balcony from your bedroom is more convenient for personal use, but having a balcony or terrace in your living room might be more desired for entertaining. Next you’ll need to identify what properties in the same area have the same room configuration along with comparable outdoor space. Alternatively you can also steer away from matching the exact type of room configuration and dig into what views and outdoor space sizes are comparable.
It’s important to note that outdoor space is wonderful, but it’s not traditional living space. Often agents will discount the price per square foot of outdoor space. Pricing the perk of a roof deck or terrace, means finding an honest value space that may not be used all year round.
The below different factors are multiplied to the price per square foot of outdoor space, to derive fair market value:
* Note each space is unique and may be priced according to its functionality, views, light, and design.
Roof Decks: ~20%
Garden: ~20%
Terrace: ~ 30%
Juliet Balcony: ~ 40%
Shared Outdoor space:~ 40%
Additional characteristics that can affect a valuation for outdoor space are things like how high you are, the light, the views, the layout, how well planted and structured, the flow from inside to outside, the noise level, the quality of the unit and the building itself, location, privacy, etc. All factors will determine where on the multiplier (20%-50% ) scale your outdoor space will land. But, there's always another side to this valuation story. Colleague Peter Amaruso of the JDS Group shares with me that there are a number of instances that outdoor space actually is priced at a premium. Penthouses with possible wrap around terraces, or maybe unobstructed views of the Central Park like the new condo being developed at 111 West 57th are testaments of how developers are changing the conventional uses of space. A view, a breath of fresh air, and an experience of being on top of the "world's skinniest skyscraper" are all incentives for premium pricing of outdoor space.
What about BBQing in NYC?
Summer in the city is a season for entertaining, enjoying the outdoors, and of course – barbecuing! Did you know that propane grills are never allowed in New York City? The NYC Fuel Gas Code states that you can't store standard backyard propane on a balcony, roof deck, backyard, or in a courtyard. [1]
In FAQ’s for Those Lucky Enough to Have Outdoor Space, The Brick Underground also shares that, “You can use a propane tank that’s smaller than 16.4 ounces in some cases. Remember, you can be slapped with fines of up to $10,000 or more if you don’t comply, although the law is mostly unenforced.” Fines this serious are simply necessary because the fire department doesn’t have enough manpower or time to check every terrace, therefore if you’re caught violating the law and using propane gas to BBQ you will be fined.
On a brighter note, according to New York City’s Department of Buildings, “Cooking with a charcoal barbecue is legal on a terrace or in a backyard — but not on a balcony or roof. There must be a 10-foot clearance between the grill and the building.” If you get really lucky some buildings like 125 North 10th Street, actually have induvial gas line connections installed, so yes BBQing is legal, safe, and a favorite pass time for residents who own cabanas.
This month we decided to feature the value of those additional square feet of outdoor space that connect you to the great outdoors of NYC. It could be a conversation piece, additional extension for entertaining, or even your private escape from four walls, it’s really not classified as traditional “living space” but regardless it's coveted space and adds value to your property.
It could be a conversation piece, additional extension for entertaining, or even your private escape from four walls, it’s really not classified as traditional “living space” but regardless it's coveted space and it’s important to understand the added value it may add to your property.
Sources:
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