This is interesting. It seems that Vornado is getting realistic and acknowledging that a 2.5 M SF tower in this shoddy spot might not be viable for quite some time. This area has a lot of potential, but dramatic clean up is essential before tenants will pay $200/sf here.
https://www.msn.com/en-us/money/realesta...d=a106c0cfc1ac4067b41930e666b653aa&ei=15
Manhattan's Transformed Penn District: Retail's Next Big Bet
Story by David Moin
"In 2023, Vornado demolished the old Pennsylvania Hotel on Seventh Avenue between 32nd and 33rd Streets, leaving a vacant 80,000-square-foot parcel. "We're strategizing on that site," Weiss said. 'It could be office. It could be residential. It could be retail. It could be a hotel. It could be a mix of all that. We could build 2.5 million square feet there,'" as allowed by the zoning.