Where Does New York’s Development Pipeline Go From Here?

New York’s condo market is in crisis.

The city has its lowest number of new development units in more than a decade. At the end of August, Manhattan had 2,800 units of new inventory, the lowest total in 12 years.

The proof is in the pudding: from April to September, new development contracts were down 26 percent compared to last year, according to Marketproof. During that same period, though, resale condo contracts were up 12 percent.

Buyers want condos, they just can’t find new ones.

“There’s just not enough new development in inventory out there for the buyers who are looking for it,” Corcoran Sunshine Marketing Group president Kelly Mack told The Real Deal.

More than 60 percent of the existing inventory is concentrated in the Financial District and Midtown, where even new buildings have struggled to sell in recent years.

“A big portion of the inventory that is currently on the market is stubborn inventory,” said Compass Development Marketing’s Dan Parker. One Wall Street, 125 Greenwich, the Waldorf-Astoria conversion and the Malabar Residences on 57th Street come to mind.

Something may be about to give, though.

This fall, the city will have an above-average number of new units hitting the market for the first time in years. More than 1,000 new units are slated to come online before the end of the year, a 94 percent increase from last year and a 10 percent increase compared to the 10-year historical average, according to Mack.

“Finally, we’re going to get some new inventory,” Brown Harris Stevens Development Marketing’s Robin Schneiderman said. “We’re also going to get it in some prime locations, and that should be a strong barometer of the state of the market going forward.”

About that: from 2026 to 2029, Manhattan is expected to see an average of about 1,500 units come to market each year, roughly 16 percent below pre-2021 levels, according to data from Corcoran Sunshine.

Autumn into…scratch that, fall into the new season with real estate’s top stories of the week.

Mitch Kossoff gets early prison release

It was a lucky week for disgraced real estate attorney Mitch Kossoff, who was approved for early parole after serving a little more than four years in prison for stealing more than $14.6 million from clients.

Kossoff, 72, had been incarcerated at Groveland Correctional Facility since May 2022. The bankruptcy trustee overseeing his former law firm recently filed a lawsuit against JPMorgan Chase seeking $18.5 million, alleging the bank enabled the theft.

Floyd Mayweather drops lawsuit against Jona Rechnitz

In a late breaker this week, Floyd Mayweather dropped a civil lawsuit against former investment manager Jona Rechnitz, which had alleged fraud and the diversion of $175 million.

Rechnitz stated that Mayweather withdrew the suit just before a court deadline to respond with evidence contradicting the claims.

The lawsuit involved allegations spanning real estate deals in New York, Chicago and Miami.

Tish James seeks to silence whistleblower, REBNY in Peak lawsuit

New York Attorney General Letitia James is attempting to keep whistleblower Woody Pascal’s sworn statement sealed and prevent the Real Estate Board of New York from intervening in a lawsuit seeking to return 31 rehabilitated buildings to rent stabilization.

Peak Capital Advisors and REBNY argue that the state is unfairly reversing decades of settled policy regarding substantial rehabilitations, putting a $150 million investment and broader industry standards at risk.

The legal battle underscores a major conflict between state housing officials and developers over how they evaluate building conditions and vacancy exceptions.

Stellberger Brothers’ Happier Grocery heads to Upper East Side

High-end Happier Grocery has signed a 20,500-square-foot lease at 210 East 86th Street on the Upper East Side to open its second New York City location in the second half of next year.

The market blends fresh food, prepared meals, specialty products and wellness programming with community events, following the model of its original Soho store.

The business was founded by brothers Dawson and Wells Stellberger, who are known for converting overlooked real estate properties into hospitality and community spaces.

Mamdani, Trump continue Sunnyside Yard talks

Speaking of the Upper East Side, who can forget how the week started at Gracie Mansion?

Mayor Zohran Mamdani and President Donald Trump met at the mayor’s place for their third in-person encounter to discuss the proposed Sunnyside Yard megadevelopment.

The leaders agreed to elevate their discussions to a technical level between City Hall and White House teams to address the necessary federal financing, approvals and platform construction required for the rail yard project.

The conversation also touched on broader policy issues, including immigration and Temporary Protected Status, alongside the leaders’ ongoing political discussions ahead of the United Nations General Assembly.