Yet-to-Break-Ground 70 Hudson Yards Secures 800K-sf Lease Commitment

Further positive signs of Manhattan’s continuing office market recovery come with the latest news of a commitment for an 800,000-square-foot big block space at a yet to break ground tower at Hudson Yards. Developer, Related Companies has reportedly struck an agreement with Deloitte to move its North American headquarters to the planned 1.1 million-square-foot tower known at 70 Hudson Yards. The accounting and consulting firm will also have the use of an 8,000-square-foot terrace at its new location within the tower that is “planned to become New York’s first zero-carbon emission skyscraper” according to a report by New York Yimby in December 2024. Deloitte’s current national hub is located at 30 Rockefeller Plaza, which also goes by the address 1250 Avenue of the Americas. Press releases in 2010 indicated that the company had secured a lease for 426,139 square feet under an 18-year term, allowing a consolidation of multiple locations. It was further noted that New York City offered $10.6 million in incentives at the time to stay in the city and add 2,100 jobs to compete with New Jersey’s already approved $42 million through its employment incentive program to relocate about 1,400 workers at the company. Construction by co-developers Related and Oxford Properties on the multi-parcel assemblage bound by West 36th and 35th Streets is expected to break ground this June, and the over 60-story tower “will be the largest ground-up office development to start construction since the pandemic.” A lack of new construction since the pandemic has diminished new supply to a level that has sparked “a scramble among financial services companies, law firms, and technology companies for the same trophy assets.” The recent success by Related Company’s may encourage other developers to “push ahead with proposed new projects despite the challenging backdrop of a global trade war and economic uncertainty.”

Source:    https://www.wsj.com/real-estate/commercial/deloitte-office-hudson-yards-manhattan-4a55d495