Related Companies Chairman Stephen Ross thanked God that he decided to move to New York, a city whose prospects he was very high on, in an appearance today on Bloomberg Television’s “Market Makers.” The developer also discussed his firm’s Hudson Yards development at length (see video above).
Whereas the struggling economy is limiting opportunity for real estate investment throughout much of the country, New York City continues to be in high demand among residents and job-seekers, ensuring that it is “the global capital.”
“It’s a city of choice for everybody,” he said. “I’m not a New Yorker but thank God I came here, because I don’t think there’s any other city like it in the world.”
Ross confirmed that Related will break ground on the first tower at Hudson Yards this fall and that the firm is in the middle of negotiations with several high-profile possible tenants for the 4 million square feet of office space planned for the first phase of the project. He acknowledged that he’s hoping to lure tenants with discounts, and is asking $70 per foot in rent or is willing to sell space to tenants “at cost.”
“When you build a project that size you need a critical mass because … nobody wants to be in a construction zone for a long period of time,” he said. “We look at it where we’re building 4 million square feet of office and we’re looking to really give a value proposition to the tenants to bring them in. We have the rest of the project where we’ll make our profits and how we’ll really succeed. We’re making it a proposition today it’s hard for them to say no to.”