BlackRock is getting bigger at Related Companies’ 50 Hudson Yards.
The asset manager is set to expand its New York headquarters with additional office space of 50,000 square feet at the coveted 50 Hudson Yards tower, Bloomberg reported. BlackRock already leases close to 1 million square feet across 15 floors.
The behemoth asset manager agreed to relocate its headquarters there before the project was even finished, with the swanky address winning out over other potential locations.
Meta is another anchor tenant at the tower with a lease that runs through 2039. The tech giant previously held short-term leases at 30 and 55 Hudson Yards, a source familiar with the deals told The Real Deal, and declined to renew the spaces. KKR took over the space at 30 Hudson Yards last year.
The sprawling Hudson Yards development, which was completed in 2022 and is reportedly nearing full occupancy, is one of the most costly ever in New York City’s history. The tower is one of many other office towers at the site, including the Equinox Hotel.
Oxford Properties, the Ontario Municipal Employees Retirement System’s joint real estate venture with Related, has plans to relocate there from 450 Park Avenue, according to the outlet.
Despite commercial real estate’s woes across the board, high-rise leases are a win for owners. A CompStak analysis of analyzes high-rise office leases in Manhattan, San Francisco, Los Angeles, and Chicago founded rents increased by 6.5 percent from pre-pandemic levels, significantly outperforming other leases on lower floors.
The data show Manhattan led high-rise deals with top transactions ranging from $187 million to over $1 billion, with law firms and financial sectors dominating. Notable leases include Paul Weiss’s $1.5 billion deal at 1345 Avenue of the Americas.
The news also comes as Related fights resistance against its plans with Wynn Resorts to build a 3 million-square-foot hotel and casino in Hudson Yards. The project has been criticized by local community groups and elected officials as interference with the enjoyment of the High Line.
Correction: An earlier version of this story said Meta was planning to drop its lease at 50 Hudson Yards. The tech giant previously leased at 30 and 55 Hudson Yards, and holds a lease at 50 through 2039.
— Christina Previte
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