Posted Dec 19, 2022, 1:42 AM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 56,622
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https://therealdeal.com/2022/12/18/development-still-has-a-pulse-during-tumultuous-times/
Development still has a pulse during tumultuous times
Less-than-ideal market conditions is slowing, but not stopping developers
Dec. 18, 2022
By Ted Glanzer
Quote:
In the December issue of the magazine, we asked the question “Who’s crazy enough to build office?”
It’s a fair question in light of numerous companies reducing their office footprints because of the rise of remote work, reduced headcount due to layoffs and increasing construction costs. Meta, for example, recently announced it is spending $3 billion to consolidate office space.
But in the case of 175 Park Avenue, Developers RXR and TF Cornerstone count themselves among the crazy — or the astute — and they remain confident they’ll fill 2.1 million square feet of office space when the building is completed.
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Quote:
And no sooner did we ask that question than another joint venture — this time between Vornado Realty Trust, Rudin Management and Citadel — announced last week a deal to construct a 1.7-million-square-foot Midtown East supertall at the combined site of 39 East 51st Street, 350 Park Avenue and 40 East 52nd Street.
Bill Rudin, the chief executive, predicted in November that companies that are shedding office space now will reverse course when the economy recovers. Rudin Management is also demolishing the 24-story building at 415 Madison Avenue to make way for a 40 story, 342,000-square-foot office tower.
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