Funny thing is, Trump still made 10 million in cash from Trump Tower, so even when sucks, he wins!
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OFFICE
How Is Hudson Yards Office Space Impacting the Larger Manhattan Market?
Owners of older office buildings are feeling the pressure to renovate and reposition their properties to stay competitive.
Patricia Kirk | May 10, 2019
Bloomberg news report. Time Inc., for instance, moved to downtown Manhattan, Fiddle notes.
But despite large blocks of space returned to market, Midtown in the first quarter of 2019 experienced 4 million sq. ft. of leasing activity and a 7 percent increase in asking rents over the previous quarter, to $85.60 per sq. ft., according to a
first quarter 2019 report from Transwestern. The bump in rents resulted primarily due to the addition of large blocks of new construction space and renovated high-end buildings, which are asking $120 to $220 per sf. ft.—representing all-time high average asking rents, the report noted.
Rent in downtown Manhattan rose considerably over the last year, but asking rents in the area around Penn Station in Midtown South, two blocks from Hudson Yards, doubled, escalating to $91.64 per sq. ft. year-over-year in 2018, according to Fiddle. This submarket’s overall average asking rent in the first quarter of 2019 was up 8 percent over the prior year, to $83.51 per sq. ft., according to a
CBRE Q1 2019 market report.
“If you had asked me five years ago if office development at Hudson Yards could be successful, I would have said no,” Fiddle says, noting that this development boosted rents at other office buildings in its path.
He also suggests hat Hudson Yards initiated a shift in the way Manhattan office tenants view geographical location. Tenants are now viewing outlier markets that were formerly considered undesirable, with a fresh eye.
Hudson Square, for example, an industrial area in Lower Manhattan with “not-so-great public transit access,” according to Fiddle, is undergoing redevelopment. Nine office projects are currently underway there, including a new 1.2 million-sq.-ft. New York headquarters for the Walt Disney Company at 4 Hudson Square.
Google is also investing $1 billion in a second Manhattan campus, according to Ruth Porat, CFO and head of corporate real estate with Alphabet. The tech giant plans to double its local workforce over the next decade, adding 7,000 employees. Google has signed lease deals for several historical industrial buildings with a total of 1.7 million sq. ft. of space. These buildings will comprise the Google Hudson Campus, including 315 and 345 Hudson Street and 550 Washington Street, which are undergoing extensive renovations.
