Brookfield is building this $2B office tower without a committed tenant

Firm says it is not worried about a lack of demand for the space

New York /
Jan.January 28, 2019 05:00 PM

2 Manhattan West (Credit: Curbed NY)

Brookfield Properties is moving forward on its $2 billion Hudson Yards office tower without a firm commitment from an office tenant.

The developer and its partner the Qatari Investment Authority are betting that tenants will lease up most or all of the spire before 2022, when it is scheduled for completion, according to Crain’s. Brookfield has already had success filling up most of the sister tower 1 Manhattan West that is almost finished, but the company did not start building that one until the law firm Skadden Arps, Slate, Meagher & Flom had already committed to a more than 600,000-square-foot lease.

The strategy is somewhat risky, as a downturn in the economy could damage the firm’s prospects for finding tenants, and 2 Manhattan West will likely face competition thanks to nearby office towers from companies including Tishman Speyer and Related Companies. However, the firm’s financial might should help insulate it from such concerns.

Ben Brown, Brookfield’s executive vice president, told Crain’s he was not concerned that the company would have a hard time finding tenants for the building.

“We know firsthand that space in 2 Manhattan West is highly sought-after, and we’re moving ahead,” he said. [Crain’s] – Eddie Small


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
The Observation Deck at Hudson Yards (Credit: Adam Pogoff)
Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)
Facebook close to finalizing Hudson Yards office deal: report
Facebook close to finalizing Hudson Yards office deal: report
Clockwise from top left: Seattle, Boston and New York City (Photo Illustration by Kevin Rebong for The Real Deal)
Real estate prices fell more in Manhattan than anywhere else in 2020
Real estate prices fell more in Manhattan than anywhere else in 2020
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
Related’s Stephen Ross and 265-275 Cherry Street (Google Maps; Getty)
NYC investment sales showed signs of recovery at end of 2020
NYC investment sales showed signs of recovery at end of 2020
Gotham's Joel Picket and David Picket with 538 10th Ave. (Google Maps)
Gotham plans massive mixed-use building on Far West Side
Gotham plans massive mixed-use building on Far West Side
Tishman Speyer CEO  Rob Speyer and The Spiral as seen on January 21, 2021 (Photos via Getty Images; Illustration by Kevin Rebong)
Tishman Speyer’s half-empty Hudson Yards tower tops out
Tishman Speyer’s half-empty Hudson Yards tower tops out
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...