DOCSLIB.ORG

New York City Third Quarter 2017

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
New York City Third Quarter 2017 Market Report New York City Third Quarter 2017 Avison Young’s 2017 Third Quarter Manhattan Market Report includes our insights on office leasing, investment sales, debt & equity, valuation & advisory and retail activity. While there has been some pullback in investment sales activity and the debt & equity environment, at the same time positive influences have created opportunities within the other groups. In the following pages, we highlight not only the challenges, but also the bright spots that point to a New York City real estate market where the fundamentals overall remain intact. The Manhattan office leasing market was heavily influenced by a greater flight to quality towards the newer and more efficient properties by the less price sensitive tenants committing to significant amounts of space in and around the Hudson Yards area in Midtown. While some members of our valuation and advisory team like to refer to the Hudson Yards area and its emergence as the new “Last Frontier,” both Midtown South and Downtown have proven attractive to a growing mix of tenants including co-working and government/public administration agencies, which helped push leasing volume in these markets well above year-over-year levels. Healthy leasing demand overall has kept the Manhattan market in equilibrium with a 10.4 percent vacancy rate at the end of the third quarter, and plenty of space options remain suitable for all office occupiers regardless of price sensitivity. A weak supply of availabilities led to a decline in investment sales activity when measured by both dollar volume and number of transactions. This trickled down to the debt and equity market, as acquisition financing declined in lockstep. With a tightening of bank standards, as well as a pullback in construction financing, the end result has been more conservative lending. Although more expensive due to higher interest costs, watch for alternative lenders to fill the void. Despite these challenges, enhanced by headwinds that include rising interest rates, foreign capital controls (in relation to China), and a depressed leasing market for brick and mortar retail, the bright side is there is a tremendous amount of capital seeking investment opportunities within a market with healthy business and steadily improving economic fundamentals. As a result, watch for year-end closing urgency for investment sales transactions to potentially generate a pick-up in activity. For retail leasing, all is not doom and gloom. Despite third quarter-end big box and staple retail announcements of Chapter 11 bankruptcies, there is hope for those that are able to adapt to current times and incorporate experiential concepts into their business strategy. As Manhattan retail continues to stabilize after the rent declines seen during 2016 and so far into 2017, most corridors are now focusing on food, fitness and other experiential concepts. Couple this with innovation and technology, which is becoming a focal point of all new brick and mortar retail strategies, watch for vacant space to be divided up and served as a non-traditional retail use. There are various positive factors in play that continue to benefit real estate within the Manhattan market. We welcome you to reach out to any of our Avison Young service lines to assist you with your strategic real estate decisions. Best, A. Mitti Liebersohn Marisha Clinton President and Managing Director, NYC Operations Senior Director of Research, Tri-State Partnership. Performance. avisonyoung.com Third Quarter 2017 / New York City Office Leasing Increasingly Diverse Tenant Mix Drives Manhattan Market Facts Leasing for the Third Quarter of 2017; Flight to 12% Quality Also a Focal Point Year-over-year increase in 3Q17 For Manhattan overall, what initially appeared as a slow start to the summer in regards Manhattan leasing volume to office leasing activity, ended up being a ramp up mid-season heading into the fall. Third quarter 2017 office leasing volume of 8.0 million square feet was up 12.0 percent year-over-year, as significant transactions were prominent among government and 8.0M SF* public administration agencies, as well as professional and business services (PBS) firms. Third quarter Manhattan leasing The strong activity from these growing office-using industries, coupled with steady volume velocity from the traditional FIRE (financial services, insurance, real estate) and TAMI (technology, advertising, media, information) sectors, helped drive year-to-date leasing volume closer to that seen a year ago. This healthy leasing demand spread across a 20%+ more diverse range of industries has kept the overall Manhattan market in equilibrium with a 10.4 percent vacancy rate at the end of the third quarter. Percentage of co-working and PBS leasing activity in Midtown South Modernization and a Growing Array of Tenants Characterizes Midtown Leasing Midtown’s third quarter leasing volume was down moderately year-over-year, but the 10.4% market continued to capture the lion’s share of large-block activity for leases greater than 100,000 square feet. 10 out of a total of 14 large-block leases were signed in Third quarter vacancy rate, Manhattan overall in equilibrium Midtown during the third quarter of this year, as in the same period last year. Notable transactions by a growing array of tenants included new lease signings executed by *At Avison Young, we track office properties that are 20,000 square feet and greater PBS firms 1199SEIU United Healthcare Workers East (580,000 square feet at 498 Seventh Avenue) and Accenture (250,000 square feet at 1 Manhattan West for occupancy in Partnership. Performance. avisonyoung.com New York City Third Quarter 2017 / Office Leasing 2020), as well as a renewal by the United Nations government entity (187,000 MARKET DATA POINTS square feet at 305 East 46th Street). TAMI tenant Amazon also executed a significant quarter-end new deal (360,000 square feet at 5 Manhattan West Manhattan Overall for occupancy in 2018). It is evident that a flight to quality towards new and efficient office space remains a focal point for the less price-sensitive tenants. Indicator 3Q16 3Q17 We have not only seen this recently from Accenture and Amazon in announced future moves, but also from FIRE tenants Third Point Management and Guardian Vacancy 9.70% 10.40% Life Insurance, in their upcoming relocations to the newer Hudson Yards area. Despite active leasing announced in Hudson Yards and the surrounding area, Rent $77.17 $79.37 the third quarter overall Midtown vacancy rate rose modestly to 10.3 percent from 10.2 percent year-over-year. We attribute the slight increase to more Class Absorption (244,367) SF 1,410,885 SF A space that came on the market in the Plaza District submarket. The Midtown overall (all classes) average asking rent for the third quarter of $87.30 is up 3.0 percent from $84.79 one year ago, and remains stable with the prior quarter. Midtown Overall Beyond TAMI, Co-Working and PBS Firms Push Midtown South Leasing Indicator 3Q16 3Q17 Higher The third quarter leasing volume in Midtown South is up double-digits year- Vacancy 10.20% 10.30% over-year due in part to the notable renewal and expansion deal by Group Nine Media (100,000 square feet at 568 Broadway) and other sizable TAMI transactions Rent $84.79 $87.30 in the 40,000 to 60,000-square-foot range. Although TAMI activity made up over 60.0 percent of the total leasing volume in Midtown South during the quarter, Absorption (232,834) SF 1,658,693 SF real estate services (mostly co-working) and PBS companies together made up over 20.0 percent. This activity is representative of the growing diversity within this market (particularly in the mid-to-small size range transactions of Midtown South Overall 40,000 square feet and below). The overall vacancy rate for Midtown South of 7.9 percent for the third quarter, is up from 7.0 percent year-over-year. This Indicator 3Q16 3Q17 increase is largely the result of direct space in excess of 380,000 square feet that came online during the quarter, mostly within the Hudson Square, Chelsea and Vacancy 7.00% 7.90% Gramercy Park submarkets. The Midtown South overall average asking rent for the period of $71.95 (stable with the prior quarter), is up over 9.0 percent from Rent $65.85 $71.95 $65.85 one year ago, representing the highest year-over-year increase across any of the markets in Manhattan. Absorption (128,628) SF (143,538) SF New York City Government and Public Agency Leasing - Primary Driver of Downtown Volume Growth Downtown Overall The Downtown office leasing market experienced volume growth well above its quarterly five-year average, spurred by significant new lease signings executed Indicator 3Q16 3Q17 by government and public administration agencies, as well as TAMI firms during the third quarter. Large-block leases included new signings by the New York Vacancy 10.20% 12.20% City Housing Authority (461,000 square feet at 90 Church Street), the New York City Department of Investigation (276,000 square feet at 180 Maiden Lane) and Rent $59.72 $64.88 Macmillan Publishers (261,000 square feet at 120 Broadway). In addition, the law firm of Lewis Brisbois Bisgaard & Smith rounded out the fourth large-block Absorption 117,095 SF 104,270 SF lease Downtown with its renewal/expansion (100,952 square feet at 77 Water Street). The overall vacancy rate for Downtown of 12.2 percent for the third Partnership. Performance. avisonyoung.com New York City Third Quarter 2017 / Office Leasing quarter is up from 10.2 percent year- Largest Blocks of Contiguous Space Currently Available over-year. In addition to availability at 3 World Trade Center, there are meaningful amounts of direct space Address Square Feet Market also impacting vacancy that came on the market this quarter, primarily 3 World Trade Center 1,803,484 World Trade Center in the Financial District.
Load more

Recommended publications
  • CTBUH Journal
    About the Council The Council on Tall Buildings and Urban Habitat, based at the Illinois Institute of Technology in CTBUH Journal Chicago and with a China offi ce at Tongji International Journal on Tall Buildings and Urban Habitat University in Shanghai, is an international not-for-profi t organization supported by architecture, engineering, planning, development, and construction professionals. Founded in 1969, the Council’s mission is to disseminate multi- Tall buildings: design, construction, and operation | 2014 Issue IV disciplinary information on tall buildings and sustainable urban environments, to maximize the international interaction of professionals involved Case Study: One Central Park, Sydney in creating the built environment, and to make the latest knowledge available to professionals in High-Rise Housing: The Singapore Experience a useful form. The Emergence of Asian Supertalls The CTBUH disseminates its fi ndings, and facilitates business exchange, through: the Achieving Six Stars in Sydney publication of books, monographs, proceedings, and reports; the organization of world congresses, Ethical Implications of international, regional, and specialty conferences The Skyscraper Race and workshops; the maintaining of an extensive website and tall building databases of built, under Tall Buildings in Numbers: construction, and proposed buildings; the Unfi nished Projects distribution of a monthly international tall building e-newsletter; the maintaining of an Talking Tall: Ben van Berkel international resource center; the bestowing of annual awards for design and construction excellence and individual lifetime achievement; the management of special task forces/working groups; the hosting of technical forums; and the publication of the CTBUH Journal, a professional journal containing refereed papers written by researchers, scholars, and practicing professionals.
    [Show full text]
  • Hudson Yards Vessel Directions
    Hudson Yards Vessel Directions BareknuckleSky remains pinchpenny:Jeromy outbox she no depaint severies her pranks smaragdine extremely sow after too heavily? Noe embed Is Hill punishingly, atomic when quite Clement illiquid. pirates betwixt? 22072020 Me visiting the count in 2019 really warm this amazing new sight. How even does it take and walk the Highline? About TAK Room. How at get tickets Same-Day toll FREE two day time-specific tickets please visit us onsite beginning at 930am Same day tickets are available have all trace the interactive kiosks in the Shops and Restaurants at 20 Hudson Yards and the interactive kiosks on prior Public failure and Gardens. VIDEO Hudson Yards Unveils Holiday Lights Display. Hudson Yards' Vessel will to open rack the slot this overnight and in surrender of. Go of the Holland Tunnel and cash right to Hudson Street North. Is Hudson Yards the Mall of where Future GQ. Guide To Hudson Yards The machine The care Space The. Check its New York City's newest landmark The helicopter at Hudson Yards. Sailing Directions for British Columbia. The High Line is a strict park built on a historic freight one line elevated above the streets on Manhattan's West Side. Vessel Hudson Yards. I remain not post explicit directions and plans since I have more been compulsory before but lets meet first the ticket line remains for morning walk until the vessel. PHOTOS See inside Hudson Yards' climbable 'Vessel' 6sqft. Sure The Shops Restaurants at Hudson Yards is located in a. Stop easy and see us after visiting the great-renowned Vessel monument walking the city's High profit or enjoying a concert at trial Shed.
    [Show full text]
  • 410 WEST 36TH STREET 6 STORY, 23 UNIT MIXED-USE BUILDING 20 Residential Units & 3 Commercial Units
    410 WEST 36TH STREET 6 STORY, 23 UNIT MIXED-USE BUILDING 20 Residential Units & 3 Commercial Units. 410 WEST 36TH STREET 1 410 WEST 36TH STREET - PROPERTY FEATURES Penn Station Madison Square Park The Highline ASKING PRICE: $10,250,000 Property Features: Location: The south side of West 36th Street between 9th & 10th Avenues. Block & Lot: 733-44 Lot Dimensions: 25' x 98.75' Lot Square Footage: 2,469 sq ft (approx.) Building Dimensions: 25' x 87' Building Square Footage: 11,455 sq ft (approx.) Stories: 6 Residential Units: 20 Commercial Units: 3 Total Units: 23 Gross Residential Square Footage: 9,546 sq ft (approx.) Net Square Footage: 8,114 sq ft (approx.) less 15% loss factor Avg. Net Unit Size: 406 sq ft (approx.) Gross Commercial Square Footage: 1,909 sq ft (approx.) Zoning: C1-7A / HY Residential FAR: 6.02 (Wide Street) Total Buildable Sq. Ft.: 14,863 sq ft (approx.) Minus Existing Structure: 11,455 sq ft (approx.) Available Air Rights: 3,408 sq ft (approx.) Assessment (17/18): $1,185,615 Taxes (17/18): $152,849 Financial Summary: GROSS ANNUAL REVENUE: $732,043 PRICE PER SQUARE FOOT: $895 VACANCY LOSS & EXPENSES: $240,171 PRICE PER UNIT: $445,652 NET OPERATING INCOME: $491,872 CAPITALIZATION RATE: 4.80% 2 PROPERTY OVERVIEW Property Description Cushman and Wakefield, Inc. has been retained on an exclusive basis to arrange for the sale of 410 West 36th Street, a 6-story mixed-use walkup located in Hudson Yards, one of the most dynamic neighborhoods in Manhattan. With record levels of equity pouring into real estate in the immediate neighborhood, this is a rare investment opportunity to purchase a well maintained, core Manhattan multifamily property that has potential to capitalize on upside in both residential and commercial rents.
    [Show full text]
  • Hudson Yards 2019-30HY Mortgage Trust Table of Contents
    JUNE 2019 STRUCTURED FINANCE: CMBS PRESALE REPORT Hudson Yards 2019-30HY Mortgage Trust Table of Contents Capital Structure 3 Transaction Summary 3 Rating Considerations 5 DBRS Viewpoint 5 Strengths 6 Challenges & Considerations 6 Property Description 8 Tenant and Lease Summary 9 Market Overview 10 Local Economy 10 Office Market 11 Office Submarket Description 12 Competitive Set 13 5 Manhattan West 13 55 Hudson Yards 13 10 Hudson Yards 13 441 Ninth Avenue 13 1 Manhattan West 14 The Farley Building 14 50 Hudson Yards 14 Sponsorship 14 DBRS Analysis 15 Site Inspection Summary 15 DBRS NCF Summary 16 DBRS Value Analysis 17 DBRS Sizing Hurdles 17 Loan Detail & Structural Features 18 Transaction Structural Features 19 Methodology 20 Surveillance 21 Chandan Banerjee Edward Dittmer Senior Vice President Senior Vice President +1 (212) 806 3901 +1 212 806 3285 [email protected] [email protected] Kevin Mammoser Erin Stafford Managing Director Managing Director +1 312 332 0136 +1 312 332 3291 [email protected] [email protected] HUDSON YARDS 2019-30HY JUNE 2019 Capital Structure Description Rating Action Class Amount Subordination DBRS Rating Trend Class A New Rating – Provisional 348,695,000 35.831% AAA (sf) Stable Class X New Rating – Provisional 389,169,000 -- AAA (sf) Stable Class B New Rating – Provisional 40,474,000 28.383% AA (high) (sf) Stable Class C New Rating – Provisional 38,758,000 21.507% A (high) (sf) Stable Class D New Rating – Provisional 147,887,000 10.621% A (low) sf Stable Class E New Rating – Provisional 144,286,000 0.000% BBB (sf) Stable Class RR NR 30,320,000 0 NR Stable RR Interest NR 7,580,000 0 NR Stable 1.
    [Show full text]
  • Fur District’
    Nypost.com March 14, 2018 Well-heeled New Yorkers are flocking to the ‘Fur District’ By Emily Nonko Impressions 23,917,718 Simon Fagg recently moved to amenity-laden rental Abington House. It's just one of the projects energizing 30th Street, once the domain of 9-to-5ers. Zandy Mangold n In the 1970s, Bennett Model commuted to work on 30th Street at his family’s company, a buying office that purchased luxury outerwear for stores around the I world. At the time, the area was known as the Fur District: Between 30th and 27th streets and Sixth and Eighth avenues, “there were over 350 fur-related companies” — and not much else, says Model, now 70. It was unfathomable that the neighborhood would attract more than a 9-to-5 crowd; the swath south of Penn Station and the Empire State Building was dominated by Nypost.com March 14, 2018 commercial businesses and had nothing in the way of nightlife. “It wasn’t a place where people lived,” Model says. Today, developers are building 346 condo and rental units along 30th Street, from the Hudson to the East River, according to Halstead Property Development Marketing. New residents bullish on the area include Simon Fagg, a 42-year-old Brit who moved to a studio at 500 W. 30th St.’s Abington House in 2015. The shift was, of course, gradual. In the 1990s, Model witnessed fur companies getting priced out or taking business elsewhere, and warehouses were converted to loft apartments. These days, he observes, practically everything — the under-construction towers, the Kimpton Hotel Eventi (renovated in 2015), Nordstrom Rack (opened in fall 2017) and hip Till & Sprocket restaurant (a 2016 debut) — is different.
    [Show full text]
  • Q1 2016 New York Office Outlook
    Office Outlook New York | Q1 2016 Vacancy moves higher as large blocks are added to the market • The Manhattan office market showed signs of caution in the first quarter of 2016 as vacancy moved higher and renewal activity increased. • While there have been concerns about slower expansion in the tech sector—as a result of a potential pullback in venture capital—the TAMI sector remained strong in Midtown South. • Investment sales activity slowed in the first quarter of the year after a strong 2015 with 120 sales totaling $12.3 billion, down nearly 20 percent year-over-year. JLL • Office Outlook • New York • Q1 2016 2 New York overview The Manhattan office market showed signs of caution in the first comprised the majority of leasing activity. McGraw Hill Financial Inc. quarter of 2016 as vacancy moved higher and renewal activity—rather renewed at 55 Water Street in Lower Manhattan for 900,027 square feet than relocations and expansions—captured the bulk of top in the largest lease of the quarter. Salesforce.com subleased 202,678 transactions. Manhattan Class A vacancy rose as several large blocks square feet at 1095 Avenue of the Americas in a transaction that were returned to the market. The vacancy rate for Midtown Class A included a provision to replace MetLife’s name atop the building with its space increased to 11.6 percent, up from 10.4 percent at year-end own, in full view of highly-trafficked Bryant Park. In Midtown South, 2015. Average asking rents were also higher as a result of newer and Facebook continued its massive expansion in a 200,668-square-foot higher quality product becoming available.
    [Show full text]
  • High Line Effect
    ctbuh.org/papers Title: The High Line Effect Authors: Kate Ascher, Partner, BuroHappold Engineering Sabina Uffer, Head of Research, BuroHappold Engineering Subjects: Civil Engineering Economics/Financial History, Theory & Criticism Landscape Architecture Sustainability/Green/Energy Urban Design Urban Infrastructure/Transport Keywords: Economics Landscape Sustainability Urban Design Zoning Publication Date: 2015 Original Publication: Global Interchanges: Resurgence of the Skyscraper City Paper Type: 1. Book chapter/Part chapter 2. Journal paper 3. Conference proceeding 4. Unpublished conference paper 5. Magazine article 6. Unpublished © Council on Tall Buildings and Urban Habitat / Kate Ascher; Sabina Uffer The High Line Effect Abstract Dr. Kate Ascher Partner Density and development come in many forms – not all of them tall. One of the most successful BuroHappold Engineering, New York City, USA development initiatives undertaken in New York City in the last decade has been a horizontal, rather than a vertical, project: the High Line. The development of this linear park was not the idea of a savvy developer, nor of a far-sighted urban planner or city agency, but of residents who wanted to save a viaduct from demolition. The tools used to carry out the transformation Kate Ascher leads BuroHappold’s Cities Group in New York. She is also the Milstein Professor of Urban Development from an abandoned rail line into a park included a combination of public and private money, at Columbia University where she teaches real estate, fortuitous zoning changes, respect for the historic fabric, and a simple landscaping aesthetic that infrastructure and urban planning courses. Her public sector work has involved overseeing major infrastructure and master would make the park a world-class attraction.
    [Show full text]
  • Hell's Kitchen South Community Planning Session
    Hell’s Kitchen South Community Planning Session Update on Replacement Port Authority Bus Terminal Plan Sponsored by Manhattan Community Board 4 Congressman, Jerold Nadler State Senator Brad Hoylman State Assemblymembers Richard Gottfried, Linda Rosenthal Manhattan Borough President Gale Brewer New York City Councilmember Corey Johnson December 6, 2016 Port Authority Bus Terminal Serves the most riders in the US Will not be able to serve anticipated future demands PA and others call for new terminal Proposed Replacement Terminal Timeline NY Elected PA releases jury MCB4 and NY local Officials hold comments on the 5 Electeds convene a a Press design finalists & NY Elected Town Hall attended by Conference the Trans Hudson 200+ citizens Officials call to call for Capacity study for the PA Master MCB4’s Land Use the PA meets with NY & termination Planning Committee forms a termination NJ Electeds and of the resulting working group to of the MCB4 & MCB5 advise on the PABT Design in 5 Design agreeing to form a designs project Competition Competition Working Group 2013-2015 Nov 2015 End 2015/Early 2016 Apr 2016 May 2016 July 2016 Aug 2016 Aug 2016 Sep 2016 Oct 2016 MCB4 MCB4 PA Board decides writes a MCB4 writes PA agrees writes a not to build a letter asking a letter to restart letter of bus terminal in PA to “Do Protesting the process objection NJ, launches No Harm” poor air design quality, the competition and NY Elected Officials use of Trans Hudson eminent Capacity study work with MCB4 on domain & response to lack of public PA consultation
    [Show full text]
  • Investor Relations | SL Green Realty Corp
    SL GREEN REALTY CORP. REITWEEK, NAREIT’S INVESTOR FORUM JUNE 2019 SL GREEN – MANHATTAN’S LARGEST COMMERCIAL LANDLORD PROPERTIES CURRENTLY OWNED TOTAL FOOTPRINT 115.0M SF COMPANY SNAPSHOT PROPERTIES PREVIOUSLY OWNED CURRENT DPE INVESTMENTS PRIOR DPE INVESTMENTS ENTERPRISE VALUE1 $17.8B BUILDING OWNERSHIP INTERESTS2 111 SQUARE FEET2 48.7M LTM COMBINED REVENUES3 $1.8B ANNUALIZED DIVIDEND PER SHARE (YIELD)4 $3.40 (3.95%) 1. Assuming a Share Price of $86.00 as of 5.31.2019. Enterprise Value Defined as the Sum of the Aggregate Principal Amount of Our Outstanding Indebtedness Including Pro Rata Share of Unconsolidated Joint Ventures, the Aggregate Liquidation Value (Excluding Accrued Dividends) of Our Outstanding Preferred Stock / Preferred Units and the Aggregate Market Value of Our Outstanding Common Equity Assuming that Each Partnership Unit Owned by a Third Party has a Market Value Equal to One Share of Common Stock. Balance Sheet Items as of 3.31.2019, With the Exception of Share Count and Share Price as of 5.31.2019. 2. Includes 34 Debt and Preferred Equity Investments Secured by 18.7M SF as of 3.31.2019 SL GREEN REALTY CORP. GREEN REALTY SL 3. Combined Revenues Defined as Total Consolidated Revenues and SLG Share of Unconsolidated Joint Venture Revenues as of 3.31.2019 4. Market data as of 5.31.2019 2 MANHATTAN OFFICE OWNERSHIP 30.0 28.5 25.0 23.8 PUBLIC REITS 22.1 20.0 18.2 16.9 15.0 12.9 13.6 11.7 12.2 12.5 10.4 10.5 9.3 10.0 8.1 8.4 TOTAL SF OWNED (IN MILLIONS) TOTAL 5.0 0.0 Source: CBRE for All Companies’ Data, Except SLG.
    [Show full text]
  • Hell's Kitchen South Coalition Completed Plan
    Neighborhood Plan 5/31/2019 Table of Contents Executive Summary ........................................................................................................................................................ 4 Hell’s Kitchen South Coalition Background..................................................................................................................... 7 History and Current Zoning ...........................................................................................................................................11 Air Quality ......................................................................................................................................................................17 Transportation ...............................................................................................................................................................21 Parks and Public Green Spaces ...................................................................................................................................33 Residential Development with Affordable Housing .......................................................................................................44 Commercial and Local Retail Uses ...............................................................................................................................52 Infrastructure and Services ...........................................................................................................................................58 Implementation
    [Show full text]
  • L'oréal Moves Into New Digs at 10 Hudson Yards
    L’Oréal Moves Into New Digs at 10 Hudson Yards June 23, 2016 After nearly 60 years in Midtown Manhattan, L’Oréal USA announced today that its first em- ployees have officially moved into the compa- ny’s new U.S. headquarters at 10 Hudson Yards. Over the next few months, 1,300 L’Oréal USA employees will occupy 10 floors of the building, spanning more than 400,000 s/f of the 1.8 mil- lion-square-foot Platinum LEED-designed Tower on Manhattan’s West Side. L’Oréal’s is the second Hudson Yards tenant to move into the new neighborhood. Ten Hudson Yards officially opened its doors June 1 to wel- come the first wave of Coach employees to their new global headquarters. The majority of L’Oréal USA’s corporate func- tions and brand teams including Essie, Garnier, Lancôme, La Roche-Posay, L’Oréal Paris, Ma- trix, Maybelline, Redken and SkinCeuticals will be housed at the 10 Hudson Yards building, a modern glass office tower alongside the High Line. “Hudson Yards has a dynamic and creative en- ergy that aligns with the culture we are building at L’Oréal USA,” said Frédéric Rozé, president and CEO at L’Oréal USA. “L’Oréal is a 107-year- old company with the heart of a startup. Hudson Yards and the evolving West Side represent the new entrepreneurial spirit of Manhattan, and the spaces we’ve created are a modern new home for L’Oréal USA that will inspire the future of our company.” Working with Gensler, L’Oréal USA custom-designed the Hudson Yards office space with collaboration in mind.
    [Show full text]
  • An Evaluation of the Costs and Benefits of New York City's Hudson Yards Redevelopment Project
    An Evaluation of the Costs and Benefits of New York City’s Hudson Yards Redevelopment Project Michael Meola Eric Kober Kei Hayashi March 13, 2019 An Evaluation of the Costs and Benefits of New York City’s Hudson Yards Redevelopment Project Michael Meola Eric Kober Kei Hayashi March 13, 2019 Executive Summary: • The City’s goal to transform the Hudson Yards District from a largely vacant, underdeveloped transportation and distribution zone into a vibrant mixed-use, medium to high density district of workers, residents and visitors is being achieved ahead of projections, with over 30 million square feet of new development completed or in construction since the rezoning in 2005 • The $3.5 billion infrastructure investment that the City made, or has committed to fund, through Hudson Yards Infrastructure Corporation (HYIC) bonds to facilitate this transformation is paying off as the essential first step to attract vast private investment in the District that otherwise would not have occurred • Tax abatements in Hudson Yards are consistent with long-standing City practice to stimulate development where it is not occurring, and have contributed to the viability of commercial development in a previously fringe location • City payments to cover interest on HYIC’s bonds from 2007 to 2018 totaled $358 million; it is now estimated that future revenues from the District will not only pay off the bonds but will generate more than $21 billion in net revenues to the City • The opening on March 15th of the Related/Oxford Hudson Yards Project, the largest in the City’s history, built over the MTA Rail Yard on a billion-dollar privately funded platform, is the symbol of this remarkably successful public/private development that evidences the enormous strength of the City’s economy • The MTA has received over $1.2 billion for its property over the MTA Rail Yard and retains valuable development rights that it will be able to sell in the future • Additional benefits to the City include extension of the No.
    [Show full text]