The sum of the parts can be greater than the whole.
This maxim is especially true in real estate.
Developers should consider whether an existing building or development project presents an opportunity to “spin-off” various layers of vertical space on the basis of distinct use components or otherwise.
For example, the sale of the ground floor retail component of an office building or the broadcast rights associated with the roof of a tower. This is usually achieved in Chicago by dividing ownership of a (characteristically mixed-use) parcel via condominium, vertical subdivision or vertical separation.
This client alert, written by Real Estate Practice Group member Chad Richman, details the vertical separation process in the city of Chicago, a simpler way to divide mixed-use, mixed-ownership property.