In a city where every square foot counts, smart developers know that zoning potential isn’t limited to what lies within a single tax lot. Through Zoning Lot Mergers, it’s possible to create additional development rights—and unlock hidden value—without going through a formal rezoning or ULURP process.

Zoning lot mergers have long been a quiet yet powerful tool in the NYC development playbook. When executed strategically, they allow for greater bulk, taller buildings, and creative massing configurations—all within the bounds of existing zoning law.

What Is a Zoning Lot Merger?

A zoning lot merger is the legal unification of two or more contiguous tax lots into a single “zoning lot” under the Zoning Resolution. These lots do not need to be in the same ownership, nor do they need to be merged physically or at the Department of Finance. What matters is that they:

· Are contiguous (share at least 10 feet of lot line), and

· Are located within the same zoning district or overlapping compatible districts

Once merged, the total zoning floor area permitted on the combined lot can be redistributed, concentrating bulk on one site while leaving others underbuilt or untouched.

How Developers Use Mergers Strategically

Zoning lot mergers can enable:

· Taller or bulkier buildings without rezoning

· Preservation of historic or low-rise structures by transferring unused development rights to adjacent parcels

· Increased profitability by achieving additional sellable/leasable floor area

· More efficient layouts on irregular or constrained sites

· Creative massing solutions on corner lots or assemblages

This strategy is commonly paired with Transfer of Development Rights (TDRs), especially when working with landmarked properties or in designated special districts.

Legal & Practical Considerations

To complete a zoning lot merger, developers must:

· Prepare a Zoning Lot Description and Declaration

· File the declaration with the City Register

· Obtain consent from all fee owners, mortgage holders, and potentially leaseholders

· Submit updated zoning diagrams and surveys to DOB for project approval

It is also standard practice to enter into reciprocal easement agreements, particularly if one lot is benefiting more than the other.

Zoning lot mergers do not require ULURP, and in many cases can be completed in a matter of weeks—making them one of the most efficient tools in the zoning toolkit.

How Development Site Advisors® Can Help

At Development Site Advisors®, we help clients identify and execute zoning lot mergers by:

· Pinpointing underbuilt parcels with transferable development rights

· Running site massing and feasibility scenarios under merger conditions

· Coordinating legal, survey, and title review

· Negotiating terms with adjacent owners for air rights or merger value

· Integrating merger assumptions into investment underwriting

Whether you’re assembling a mid-block site in Midtown or looking to build taller in Astoria, our team can help you unlock hidden FAR and build smarter.

Think your site could benefit from a zoning lot merger? Request a Sitestimate™ to evaluate your property’s merger potential—and how much more you can build by thinking beyond the lot line.