search

The Real Deal Logo

Trending

Lawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aRent board’s 4% hike will “plunge” buildings into distress: landlordsRent board’s 4% hike will “plunge” buildings into distress: landlordsHousing deal could rescue Halletts North, other stalled projectsHousing deal could rescue Halletts North, other stalled projectsSL Green, Vornado kick in $100M to extend 280 Park loanSL Green, Vornado kick in $100M to extend 280 Park loan
New York

Commercial tenants steering clear of Governors Island

Ferry service, historic building restrictions seen as stumbling blocks

From left: Governors Island ferry terminal and historic houses
From left: Governors Island ferry terminal and historic houses

Governors Island Is A Nice Place to visit, but it turns out tenants wouldn’t want to set up shop there.Tourism on the 172-acre island has shot up 15 percent from a year ago to 400,000 visitors. But limited ferry service and infrastructure, as well as building restrictions, make the location a tough sell to permanent tenants, the Wall Street Journal reported.

Sign Up for the undefined Newsletter

All told, the city has spent nearly $335 million in capital improvements on the island, but no plans have come forth for a 33-acre site reserved for a convention center or hotel, according to the newspaper. The City University of New York considered leasing historic buildings but determined renovation costs were too high, and New York University decided a proposed campus would feel isolated, the Journal reported.

A nonprofit and a marine science high school are currently the island’s only permanent tenants, but nonprofit Spaceworks will set up artist studios there and Italian spa chain QC Terme plans to open a location. [WSJ] – Tom DiChristopher

Tags
Governors Island