The Real Deal New York

Hudson Yards rezoning could save Related project: OPINION

Allowing for more housing is possible solution to leasing woes, says YIMBY editorial
October 30, 2014 02:15PM

The rezoning of Hudson Yards to allow for more residential development could ease the commercial leasing struggles of the Related Companies’ massive project, New York YIMBY wrote in an opinion piece.

Enterprise software firm SAP is the sole tenant at the development paying a face rent that would create significant profit, the website said.

Leases have not been signed at the South Tower in more than a year.

“The fundamental problem that de Blasio has inherited is that more office space at Hudson Yards does not appear viable given the tax abatements that have been approved,” Stephen Smith wrote.

The far West Side sites along Hudson Boulevard between 10th and 11th avenues in the West 30s are largely zoned for commercial use.

“Housing is much more valuable than office space, and builders could easily get $2,000 per square feet for high-rise condos on the Far West Side, within walking distance of Midtown,” Smith wrote. “Compare this with the struggle to lease office space in the $80s a foot, and the switch would be a no-brainer for any towers not already rising.” [NY YIMBY] Mark Maurer


    Ummmm….isn’t Time Warner moving to Hudson Yards? That’s a lot more significant than SAP. That said, there should be more residential at Hudson Yards; including affordable units. Hudson yards should offer less commercial space. Why? At the end of the day, this neighborhood will be served well by just ONE subway line, the extended 7 train which most everyone coming to Hudson Yards will need to take at least two trains to get to or walk a couple of long blocks. With millions of sf available at the WTC as well as at Brookfield Place which has superior access to 12 subway lines, PATH and multiple ferries plus 1.5MM of new retail at the base, most companies should opt to go downtown and not to the west. Of course, some companies will still go to Hudson Yards, but they have big competition downtown.