Morgan Stanley pulls out of Tishman Speyer’s Hudson Yards bid

Morgan Stanley will back out of a deal with Tishman Speyer to build a new headquarters at Hudson Yards and finance the 26-acre project, over concerns that the new office would not be ready by 20123, when Morgan Stanley would need to move in. While Tishman Speyer has not pulled its bid, the blow comes not long after Brookfield Properties withdrew its bid to develop the West Side rail yards. The credit crisis has raised concerns about whether enough financing will be available for the massive project. “Everyone’s hoping that by the time you need to finance it, the market is back to normal,” one anonymous bidder said.