New Haven’s Downtown For All Upzoning

New Haven has officially taken a major step toward reshaping its downtown. In December 2025, Mayor Justin Elicker signed the “Downtown For All” zoning overhaul into law, a move that significantly expands development potential in the city’s core and creates new opportunities for property owners, investors, and tenants alike.

The new Downtown For All overlay district modernizes long-standing zoning rules, allowing for greater density, taller buildings, and more flexible development standards. For those active in downtown real estate, this marks an important shift in how projects can be planned, leased, and positioned moving forward.

The new overlay district introduces several impactful updates:

• Increased building heights, with structures of up to approximately 12 stories now permitted in key downtown areas

• Greater housing density, including a reduction in minimum unit sizes from 1,000 SF to 400 SF

• Expanded housing types, allowing configurations such as single-room occupancy and other formats that support affordability

• More regulatory flexibility, with relaxed setbacks, common-space requirements, and other development standards

The goal is to make it easier to build downtown, address housing demand, and support long-term economic vitality in New Haven’s most connected neighborhoods.

A More Dynamic Downtown Creates New Leasing Opportunities

As more residents move downtown and mixed-use projects take shape, demand for well-located commercial space will continue to grow. Retail, office, and service-oriented tenants stand to benefit from increased foot traffic, a larger residential base, and proximity to transit, institutions, and employment centers.This evolving landscape is especially relevant for owners and tenants evaluating lease structures, build-outs, and long-term positioning in downtown assets.

In the heart of this transformation, Ballou Team is pleased to introduce available commercial space at 19 Elm Street, ideally located in one of Downtown New Haven’s newest mixed-use developments.

Positioned steps from major downtown corridors, institutions, and transit, 19 Elm Street offers a prime opportunity for businesses seeking visibility, accessibility, and long-term growth potential in a rapidly evolving market. As zoning flexibility and density increase around downtown, properties like this are well-positioned to benefit from sustained demand and activity.

107–109 Court Street, another fully approved redevelopment opportunity in the heart of Downtown New Haven. The City Plan Commission has approved plans to expand and convert two adjoining mixed-use buildings into four-story structures with 40 total residential units and two retained street-level commercial spaces.

With approvals already in place, this project offers investors a streamlined path to execution in one of downtown’s most promising corridors directly aligned with the city’s new zoning vision. Importantly, the recently adopted Downtown For All zoning overlay may create additional upside, introducing the potential to further increase unit count or density, subject to review and confirmation.

How We Help Investors, Owners & Tenants Navigate Change:

Zoning changes create opportunity, but also complexity. Whether you are:

• An investor evaluating upside in downtown assets

• A property owner repositioning or leasing space

• A tenant structuring a new or renewed commercial lease

At Ballou Team, we help our clients review, structure, and negotiate commercial leases with a forward-looking approach, factoring in zoning changes, market conditions, and long-term business goals. The Downtown For All overlay signals a new chapter for New Haven. As development accelerates and downtown density grows, early planning and informed leasing decisions will be key to capturing value.

Whether you’re exploring downtown opportunities, evaluating how the new zoning impacts your property, or structuring your next commercial lease, our team is here to guide you every step of the way.