No one's buying

From The Real Deal:

I still remember a day that seems so long ago (it was only 18 months ago) when every piece of developable land for a residential condominium or rental, hotel or office building was selling for prices as high as $500 per square foot. Parking lots, industrial warehouses, former gas stations and odds and ends throughout the five boroughs were priceless possessions, only available to the most successful or financeable developers. Then was then and this is now: there is limited availability, and little or no financing available for land or developments.

In addition, there is uncertainty about how much money is actually out there.

Due to the lack of financing for residential development at any price, few developers are looking to acquire land. The combination of limited financing, elimination of most of the tax abatements through the 421-a program, and the general attitude that the price of land will continue to decrease is resulting in the lack of a market for this asset.