BKREA’s February market update spotlights the Long Island City rezoning as a pivotal development shaping New York City’s next real estate cycle. Chairman Bob Knakal notes the initiative signals renewed momentum for development sites and underscores shifting investor focus across the metropolitan market.
-- BKREA’s latest NYC Development Site Monthly newsletter highlights the recently approved OneLIC neighborhood plan in Long Island City as a major policy development expected to influence New York City’s land and development market in the years ahead. The February edition frames the rezoning as a significant structural shift, noting that large-scale zoning changes often serve as early indicators of new development cycles by redefining allowable density, project feasibility, and long-term supply expectations.
Read The Rezoning News at https://www.bkrea.com/development-newsletter/february-2026
According to BKREA’s analysis, the OneLIC plan spans approximately 54 blocks in Long Island City, Queens, making it the largest neighborhood-specific rezoning approved in New York City in more than two decades. Developed by the New York City Department of City Planning and approved by the City Council in late 2025, the initiative is intended to modernize outdated zoning regulations and encourage mixed-use development, housing production, and infrastructure improvements across the district. The newsletter notes that rezonings of this scale provide the market with rare clarity into future development pipelines, enabling developers, investors, and lenders to evaluate opportunities over longer time horizons rather than reacting solely to near-term market conditions.
BKREA’s February update emphasizes that increased allowable density can materially change development economics by expanding the potential revenue profile of sites within the rezoned area. Long Island City’s strong transit connectivity, established residential base, and proximity to Midtown Manhattan are cited as factors that could amplify the impact of the policy shift, positioning the neighborhood as a continued focal point for both private investment and large-scale development planning. The firm’s research suggests that when policy changes align with infrastructure access and market demand, land pricing and deal activity often respond ahead of actual construction, as capital moves to secure future development positions.
Key points highlighted in the February newsletter include:
- Scale of Rezoning: Approximately 54 blocks affected, representing the largest NYC neighborhood rezoning in more than 20 years
- Market Signal: Large rezonings historically precede new development cycles by expanding allowable density
- Economic Impact: Higher density expected to reshape land valuations and project feasibility
- Investment Outlook: Long Island City positioned to attract continued institutional and private capital
“The significance of rezonings like OneLIC isn’t just about what gets built immediately — it’s about how they reset expectations for an entire submarket,” said Bob Knakal, Chairman and CEO of BKREA. “When the rules governing density change at this scale, capital tends to move early, and that often defines where the next wave of development activity takes hold. It is also important to note that when zoning changes happen that increase allowable density, land values go up and when land values go up, owners sell. And when owners sell, stuff gets built. Thats good for jobs, good for the tax base, good for housing and great for the city!"
The newsletter also places the rezoning within the broader context of New York City’s constrained development environment, where limited new supply and rising construction costs have made large-scale opportunities increasingly significant for market participants seeking projects with sufficient scale to achieve viable returns. By creating a framework that supports higher density and mixed-use growth, the OneLIC initiative is expected to contribute to the city’s longer-term housing and commercial pipeline while reinforcing Long Island City’s role as one of the region’s most active development corridors.
BKREA reports that the firm is currently handling more than $3.4 billion in land exclusives and continues to track legislative, zoning, and capital market developments affecting development sites across the city. In addition to the Long Island City analysis, the February newsletter includes updates on active construction projects, air rights opportunities, and recent development site transactions, providing a comprehensive snapshot of current market activity and emerging trends.
The Development Site Monthly newsletter is part of BKREA’s ongoing effort to provide property owners, developers, and investors with timely insights into the forces shaping New York City’s land market. The February edition positions the OneLIC rezoning as more than a planning milestone, describing it as a signal of how policy, density, and capital flows may converge to define the next phase of the city’s development cycle.
About the company: BKREA is a New York City–based commercial real estate brokerage specializing in investment sales, development sites, and strategic advisory services. Led by industry veteran Bob Knakal, the firm combines deep market intelligence, research-driven insights, and a track record of landmark transactions to help owners, investors, and developers maximize value across complex assets.
Contact Info:
Name: Bob Knakal
Email: Send Email
Organization: BKREA
Address: 135 West 36th Street NY NY 10018
Phone: 212-888-8850
Website: https://bkrea.com
Release ID: 89184593
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