The Real Deal New York

Is the Hudson Yards district the new Midtown East?

36% of the new area's tenants are relocating from that neighborhood: JLL

November 29, 2016 11:00AM

Rendering of 55 Hudson Yards (credit: Kohn Pederson Fox)

Rendering of 55 Hudson Yards (credit: Kohn Pederson Fox)

Midtown East is taking a big hit as companies continue to sign up for office space at the Hudson Yards district.

Based on percentage of square feet leased, 35.8 percent of tenants taking office space in Hudson Yards are coming from the Plaza District (33.7 percent) or the Grand Central District (2.1 percent), according to JLL TRData LogoTINY data cited by the New York Post. However, none of the companies moving to Hudson Yards is moving from west of Fifth Avenue, the New York Post reported.

Companies leaving Midtown East for Hudson Yards — the largest private real estate development in U.S. history — include electronic trading platform MarketAxess, which is taking 83,000 square feet at Related Companies’ 55 Hudson Yards. Steven Cohen’s asset management fund Point72 will also take 175,000 square feet at the building. Last year, Wells Fargo has committed to taking 500,000 square feet at Related and Oxford Properties Group’s 30 Hudson Yards. Law firm Skadden Arps is also leaving Midtown East, having signed on for 550,000 square feet at Brookfield Property Partners’ 1 Manhattan West.

When it comes to companies relocating to Hudson Yards from places other than Midtown East, 30 percent are coming from Columbus Circle, and just under 15 percent are coming from Penn Plaza and the Garment District. Ten percent are moving from Times Square, 5 percent are leaving Downtown, and 4 percent are moving from Midtown South, according to the paper. [NYP]Miriam Hall

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