Old office towers get $2B in facelifts as tenants flock to younger buildings

Properties are competing with older towers that don't have upgrades

TRD New York /
Nov.November 10, 2016 08:30 AM
From left: 450 West 33rd Street, 90 Park Avenue and 315 Hudson Street

From left: 450 West 33rd Street, 90 Park Avenue and 315 Hudson Street

Several Manhattan office towers are getting facelifts — to the tune of $2 billion.

At least 11 towers are getting upgrades as tenants increasingly flock to flashy new office buildings, like those at Hudson Yards and the World Trade Center, the New York Post reported.

The competition is fierce: since 2010, 74 percent of completed or planned tenant relocations (in spaces of more than 186,000 square feet) were to new towers, according to CBRE TRData LogoTINY.

Brookfield Properties, for example, pumped $200 million Into 450 West 33rd Street, giving it a glassy facade and renaming it 5 Manhattan West. Other renovations include Vornado Realty Trust’s 90 Park Avenue, which underwent a $70 million overhaul, and Jack Resnick & Sons’ 315 Hudson Street, which is currently undergoing a $65 million renovation.

“In the past, it was not uncommon to upgrade a lobby. But this is a relatively new phenomenon where buildings that are not that old are being completely rebuilt,” developer Douglas Durst told the Post.

Even with the redesigns, these postwar towers can’t really compete with the column-free, high-ceiling spaces opening at new office buildings. According to the Post, though, that’s not really the point. The upgrades are intended to give the buildings an edge over other old towers.

“If you’re in a 1960 building that hasn’t had a comprehensive upgrade and you need to move, you’re not going to a different 1960 building that hasn’t had one either,” said Mary Ann Tighe, head of CBRE’s tristate office. [NYP]Kathryn Brenzel


Related Article

arrow_forward_ios
Steve Croman and 566 Hudson Street (Credit: Google Maps, iStock)

Steve Croman sued over illegally deregulating apartments

Census tract 135 and Stellar Management's Larry Gluck (Credit: Getty Images and Stellar Management)

How a small stretch of land on the Far West Side became an Opportunity Zone

Crowdfunding platform launches $20M Opportunity Zone fund

Real estate stocks dip slightly amid Fed Rate cut, housing starts data

When Bill de Blasio announced the end of his campaign, the industry reacted largely with relief but not surprise (Credit: Getty Images and Pixabay)

De Blasio’s campaign is dead, and real estate is happy

Power lunch: Resi brokerage and lending execs dish dirt in Hudson Yards

Small Talk: Trying to make sense of the WeWorld

A rendering of Corcoran Soho (Credit: iStock and CetraRuddy)

“Perhaps a sad inevitability:” Corcoran isn’t the only firm
under attack

arrow_forward_ios