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