Michael Bloomberg called the Hudson Yards, “The centerpiece of our plan for midtown Manhattan; a new epicenter of commerce, culture, and community. With a unique mix of uses, unsurpassed open space, transportation access and
amenities like nowhere else, the Hudson Yards represents the best that New York City has to offer.” Hudson Yards is New York City’s newest neighborhood that will reshape Manhattan’s west side and the infamous New York City skyline. The neighborhood will be an exciting hub of connectivity, community, culture and creativity; and is expected to have over 24 million visitors every year. The area will include 26 million+/- square feet of office space, 20,000 new residences, luxury hotels, and around two million square feet of retail. In addition, there will be a 750-seat public school. According to Forbes, the Hudson Yards is the largest private real estate development in the United States and the largest in New York City since Rockefeller Center.
Rarely does an opportunity become available to build a city’s tallest tower, especially in New York City, which is known for its iconic buildings. Massey Knakal has been exclusively retained to sell this Hudson Boulevard facing site at 435 Tenth Avenue, running block-through from 501-507 West 34th Street to 510-528 West 35th Street. Dubbed as “The Hudson Spire,” it could one day become the tallest building in the United States surpassing One World Trade Center, thus making it the world’s fourth-tallest building after the Burj Khalifa in Dubai, The Shanghai Tower in China, and the Makkah Royal Clock Tower in Mecca, Saudi Arabia. MJM+A Architects has determined this 37,026+/- square foot site could ultimately yield a building of 1,800 feet high soaring over 100 stories into the air. With the purchase of DIB and ERY rights, this mixed-use site would yield about 1,221,858+ SF in the heart of Manhattan’s most exciting district. The site would be suitable for retail, office/hotel, and residential. An observation deck would be the ultimate addition.
Two major drivers in the area are the The High Line and the 7 train extension. The High Line’s third and final phase is expected to open later this year. It will loop around Hudson Yards as it turns to the Hudson River at West 30th Street, culminating at Twelfth Avenue and West 34th Street. Hudson Yards will be the most accessible neighborhood in New York City with unparalleled connections to commuter rail, subway, traffic, and ferry system along the Hudson River. Furthermore, the Jacob Javits Center, New York City’s largest convention center, sits on the northern periphery of the Hudson Yards neighborhood.
Tenth Avenue will soon be a major thoroughfare for retail, with area tenants as well as millions of visitors flocking to the neighborhood. Related Companies has planned for a total of 1,050,000+/- SF of retail on their 26 acre site. They have annotated plans for a 750,000+/- SF retail podium structure that will run along Tenth Avenue. Their asking rents have been rumored to approach the Columbus Circle mall level, which is upwards of $1,000/SF. A major component of this podium will be a massive high end food court which Danny Meyer is helping spearhead. They are also looking to secure a very upscale restaurant and a lounge similar to the Stone Rose in Columbus Circle. The area will be bolstered by the arrival of Fairway which will open under the Highline off West 30th Street. News also includes the addition of a movie theater.
Hudson Yards has already established itself as a highly sought after location for office tenants who desire to be in state of the art space amongst a well thought out urban plan. Coach purchased a 740,000 SF condo in Related Company’s first tower, currently rising on West 30th Street. L’Oréal SA, the Paris based cosmetic company, followed suit with a lease of 402,000 square feet. SAP AG also leased 115,000 SF in the top tower. Most recently, Time Warner has announced it will move its 5,000 employees into 30 Hudson, which will be Related Company’s tallest tower at the southwest corner of Tenth Avenue and West 33rd Street. The tower will rise 80 stories to 1,227 feet. Time Warner will ultimately own 40% of this building. Clearly, there is critical mass for cutting edge tenants in the area.
Business Insider ranked New York City the top city for US tourism. Therefore, it is surprising to know that New York City does not even appear on the Top 50 list of largest hotels in the world. Besides the massive Casino & Resort Hotels in Las Vegas and Macau, several other global cities offer mega hotels to appeal to tenants and business travelers. Examples include the 7,500 room Izmailovo Hotel in Moscow and the 3,680 room Shinagawa Prince Hotel in Tokyo. Even Chicago’s 2,020 room Hyatt Regency is larger than any of New York City’s hotels. To date, there are only 90,000 hotel rooms in New York City. Hudson Yards will soon help bolster the New York City hotel presence.
Observation decks will also be a centerpiece to Hudson Yards. They are big business and an enormous profit center for the buildings they serve around the world. One World Trade Center recently announced that Legends, a partnership including the New York Yankees and the Dallas Cowboys, leased the building’s 100th floor for $875 million dollars over 15 years. The Empire State building provides insight into the success of observation decks with their Public Offering. Their observation decks are on the 86th floor, at 1,050 feet high, and 102nd floor, at 1,250 feet high. It attracts four million visitors per year. Their estimated revenue for this space is about $85 million per year, which is almost 40% of the 2.7 million SF tower’s revenue. Attendance there is also on an upswing, rising an average of 16.4% per year from 2000 to 2011. Ticket prices start at $27 and increase by $17 to see the 102nd floor. Finally, Related Company’s observation deck will be the highest to date. If a developer looked to add an observation deck at The Hudson Spire, they would likely need a special permit to add above the residential portion. If successful, the Hudson Spire’s observation deck, at close to 1,800 feet, would be the highest in New York City, making it a destination for tourists from around
The Hudson Yards will reshape New York City. The 7 Subway line and final phase of the High Line are expected to be completed later this year. The Related Cos. development is starting to take shape with major office tenants signing on, and other developments are beginning to break ground. It is exciting to see the long talked about neighborhood finally start coming to life.