NEW YORK | 175 Park Avenue (Grand Hyatt) | 1,581 FT | 92 FLOORS

[NYguy]

Originally Posted by ChiND

I guess they’re really serious about this building. I wasn’t sure because I recall Boston Properties giving a very negative prognosis about the office market not long ago. I think that BP claimed that rents of $200/sf were needed to make a reasonable profit.

Of course they're serious. These aren't some random dudes that just wish they can put up a building. And there's already a lot of money tied up in this development, which btw is more than just the building. There's a lot of transit construction and upgrades tied into it. BP has it's own ideas of what it can build, when, and why. Not all developers are the same. We've seen towers with as much office space as this one get built and leased in the Hudson Yards, yet Boston Properties smaller 3 Hudson remains on hold. Don't read too much into what any particular developer says, unless it's only in regards to their own projects.

But beyond location and demand, which this building is perfectly suited in both regards, the closest comparison is One Vanderbilt.


https://www.kpf.com/news/one-vanderbilt-commands-top-office-rent-says-the-real-deal

Already 95% leased, the tallest office tower in Midtown Manhattan broke the all-time record for rent per-square-foot at over $300.

This surpassed the record rents at the new 425 Park, which would probably be broken again by CItadel if they weren't building their own tower.

https://www.hedgefundspaces.com/citadel-inks-priciest-deal-in-nyc-history-at-425-park/



175 Park Avenue is 2 msf of office space, topped by the hotel it is replacing. There's nothing shocking about that in New York. It's just a great design.

Originally Posted by Ahoi

Who has officially published this video? Link for the video?

RXR Development? or SOM?

If not, it would be unofficial material intended for potential tenants only.

All office tower proposals have renderings and marketing videos we don't usually get to see. I bet if we were able to get into the 175 Park showroom at 1 Vanderbilt, we would see a lot more.

[ChiND]

I think that NY is the only city that is still planning new, major office towers.

[NYguy]

Originally Posted by ChiND

I think that NY is the only city that is still planning new, major office towers.

And that's only because of demand. Even before the pandemic, there was a shortage of new office space in the city. It took two large rezonings (Hudson Yards, Midtown East) to create the opportunity for the type of modern office towers companies crave to get built. It's why we saw towers like Manhattan West, 30 & 50 Hudson, the Spiral, One Vanderbilt, even 270 Park go up in a relatively short amount of time. Even the WTC, which is seen as slugglish by comparison, saw a lot of new space built and absorbed.

Keep in mind that the older office buildings are harder sells post-pandemic, as companies are looking to the newly constructed towers that can offer so much more. The majority of companies won't move into the new, splashy towers. But the market for those that desire to and will is large. That's the thing that a lot of people don't understand when they read reports about vacancies. They question why new office space is going up when some of the older towers have vacancies. You would think the answer obvious.

[Crawford]

Originally Posted by ChiND

175 Park appears when RXR’s website is accessed: www.RXR.com

I guess they’re really serious about this building. I wasn’t sure because I recall Boston Properties giving a very negative prognosis about the office market not long ago. I think that BP claimed that rents of $200/sf were needed to make a reasonable profit.

$200 a month is pretty normal rent these days in high-end Midtown buildings. My wife's firm pays just under $200 for a 1950's era Midtown building (granted, very well-located, near Grand Central).

I can't imagine 175 Park would lease for less than $300. The GM Building, built in the late 1960's, has had $300/month rents on higher floors for decades.

[NYguy]

^ Grand Central is key. It's the city's top business district, and the rezoning aims to help keep it that way.

[ChiND]

Where I come from, everyone is under the impression that NY is a broken, crime-filled city and that all people and businesses are fleeing to North Carolina, Florida, and Texas. I guess they’re wrong.

[NYguy]

Originally Posted by ChiND

Where I come from, everyone is under the impression that NY is a broken, crime-filled city and that all people and businesses are fleeing to North Carolina, Florida, and Texas. I guess they’re wrong.

Well, surely you can enlighten them. They're just ignorant, and only know what they're being told. You are armed with enough information.

[Busy Bee]

Ironically they're being "told" by the corner of Sixth Av and 48th St, N.Y., N.Y.

[NYguy]

Originally Posted by Busy Bee

Ironically they're being "told" by the corner of Sixth Av and 48th St, N.Y., N.Y.

Of course. But we'll leave politics out of this discussion.

[Xing Lin]

Another rendering I've made, with some changes to my model based on the more detailed renderings we've now seen:

Original photo by Brian Aronson on Flickr

[Dylan Dude]

When does construction start? And when would it be topped out?

[jbermingham123]

Originally Posted by Dylan Dude

When does construction start? And when would it be topped out?

uhhhh

[NYguy]

Originally Posted by Xing Lin

Another rendering I've made, with some changes to my model based on the more detailed renderings we've now seen:

Original photo by Brian Aronson on Flickr

Nice!



NOVEMBER 25, 2023

[dbp80203]

Originally Posted by NYguy

Yes, it’s all about that base! Iconic from every angle.

https://www.youtube.com/watch?v=7PCkvCPvDXk

[mrnyc]

again, that base alone is just beyond the beyond incredible.

[Dylan Dude]

Originally Posted by jbermingham123

uhhhh

What? I'm not gonna read through 100 pages to find out

[NYguy]

Originally Posted by Dylan Dude

What? I'm not gonna read through 100 pages to find out

Then don’t ask. Nobody owes you anything, especially if you’re not interested.

[Dylan Dude]

Originally Posted by NYguy

Then don’t ask. Nobody owes you anything, especially if you’re not interested.

I didn't say anyone owes me anything, you'd think someone would just answer the question out of generosity instead of muiltiple people freaking out at me over my question lol and who asks questions if they're not interested?

[Busy Bee]

Originally Posted by Dylan Dude

When does construction start? And when would it be topped out?

Sometime in the future. Hopefully.

A few years after that. Hopefully.

[Zapatan]

^ To my knowledge they need to find a tenant and then demo (which will take a while).

I think if we're lucky it starts in a year or two and finishes 2028-2030.