NEW YORK | 175 Park Avenue (Grand Hyatt) | 1,575 FT | 86 FLOORS

[NYguy]

A condensed version of the main report from the City Planning Commission...





























David Burney goes down as the lone knucklehead.

[Raysiri]

Seems like the competition is heating up between Tower Fifth, 418 11th Avenue and 175 Park Avenue. I’m feeling a megatall is coming up within a few months.

[pianowizard]

^Yes, there clearly is an interest in surpassing the CPT's 1550 ft. My worry is that there is also an interest in not surpassing 1WTC's 1776 ft structural height, in which case we might not see a megatall for a long while. In support of the latter possibility, recall that the CPT's original height was 1775 ft.

[MAC123]

Originally Posted by pianowizard

^Yes, there clearly is an interest in surpassing the CPT's 1550 ft. My worry is that there is also an interest in not surpassing 1WTC's 1776 ft structural height, in which case we might not see a megatall for a long while. In support of the latter possibility, recall that the CPT's original height was 1775 ft.

1WTC's height is such a farce. But anyway I doubt it'll be long before we see actual proposals to surpass it, and not long after that when stuff actually gets set into motion.

[NYguy]

Originally Posted by pianowizard

^Yes, there clearly is an interest in surpassing the CPT's 1550 ft. My worry is that there is also an interest in not surpassing 1WTC's 1776 ft structural height, in which case we might not see a megatall for a long while. In support of the latter possibility, recall that the CPT's original height was 1775 ft.

I don’t think they’re interested at all in just topping CPT’s height, they wouldn’t need to go as high just to do that. Likewise, no one’s trying to surpass or stay under the height of the FT. They just are what they are.

[gttx]

Originally Posted by pianowizard

^Yes, there clearly is an interest in surpassing the CPT's 1550 ft. My worry is that there is also an interest in not surpassing 1WTC's 1776 ft structural height, in which case we might not see a megatall for a long while. In support of the latter possibility, recall that the CPT's original height was 1775 ft.

As part of my job, I've looked at schemes for dozens of sites in East Midtown, Hudson Yards, and elsewhere that could potentially accommodate this sort of building. Never once have I heard a developer mention the height in relation to any other building in the city, WTC or otherwise. It just isn't part of the calculus for most developers.

[NYguy]

^ I agree. It’s really just us fans who are concerned with height and rankings. Only when it comes to specific things like observation decks does it come into play.

And on another topic, as someone mentioned earlier, they are taking reservations at the hotel again for anyone who just wants to see it for a final time.

[MAC123]

Originally Posted by NYguy

they are taking reservations at the hotel again for anyone who just wants to see it for a final time.

I want to see it for a final time, though my sentiments may be different than they intend with these reservations.

[NYguy]

Originally Posted by MAC123

I want to see it for a final time, though my sentiments may be different than they intend with these reservations.

Yeah, it won’t be the same as before, and it’s not clear just how much will open. But it should be interesting.

[nlosborne1]

There is no set height limit in New York at 1776 ft. I have no idea why people keep throwing it around. It’s about time New York finally gets a mega tall proposal. Just about every major city in Asia has had at least one mega tall proposed or built.

[chris08876]

Originally Posted by nlosborne1

There is no set height limit in New York at 1776 ft. I have no idea why people keep throwing it around. It’s about time New York finally gets a mega tall proposal. Just about every major city in Asia has had at least one mega tall proposed or built.

It just comes down to feasibility and market conditions. When a mega tall makes sense, it will make sense. Unlike some places, we build on market feasibility, risk management and what makes sense. Long term is always a consideration and sometimes, a lot of it comes down to the ROI. Is it worth it? Risk is paramount in what is considered.

[NYguy]

Originally Posted by nlosborne1

There is no set height limit in New York at 1776 ft. I have no idea why people keep throwing it around. It’s about time New York finally gets a mega tall proposal. Just about every major city in Asia has had at least one mega tall proposed or built.

Just as Chris said, has nothing to do with what's going on here. Megatalls are not necessary in any location, supertalls barely are. In New York, it comes in two categories. 1 - towers that stretch high to provide enough units with views (taking advantage of both air rights, and lot size). And 2 - a shortage of new office space in a city where the vast majority of it is 50 years old or more. The result is office towers that would have been shorter a few decades ago now reaching higher with higher ceilings and other amenities.

I know some have gotten spoiled and bored with the mere supertall, but I'll never get tired of them. A megatall would bring excitement for sure, but it won't get built here until there's a reason or a spark for it. It wouldn't prove anything that New York didn't prove a hundred years ago.

[NYguy]

https://www.crainsnewyork.com/commer...-having-moment

Midtown's office market is having a moment


October 25, 2021
EDDIE SMALL
AMANDA GLODOWSKI

After years of playing second fiddle to massive new developments arriving elsewhere in the city, Midtown's office market is experiencing a renaissance.

Driving the momentum are employers' desire to make the commute easier for employees hesitant to return following 19 months of remote work and the highest amount of new office space coming to the neighborhood since the redevelopment of Times Square in the 1980s.

Companies are flocking to the market to help some of their employees who live outside the city avoid a double commute, for which they must take a train into Manhattan and then get on the subway for another leg of their trip. The pockets of Midtown closest to major transportation hubs such as Grand Central Terminal and Penn Station are thus seeing a particularly strong popularity boost, said Jeffrey Peck, vice chairman at real estate brokerage Savills.

“ Most tenants today are in the market not only to be in Midtown, but to be proximate to Grand Central and Penn Station like never before," he said.

About 36% of Manhattan's 540 million-square-foot office market is within a 10-minute walk of such transit hubs, and easy access has become even more of a talent draw coming out of the pandemic.

Leasing activity was particularly strong in Midtown during the third quarter, when companies took about 3.3 million square feet of space in the neighborhood, compared with 1.8 million square feet in Midtown South and 775,000 square feet downtown, according to the latest office report from CBRE. This was even more activity for the neighborhood than during the third quarter of 2019—before the pandemic—when Midtown saw about 2.9 million square feet of leasing compared with about 2.6 million in Midtown South and 1.8 million downtown, CBRE found.

A number of high-profile new office buildings in Midtown, such as SL Green's One Vanderbilt and L&L Holding Co.'s 390 Madison Ave., have added to the neighborhood's appeal and could be a bright spot for its future. With the Long Island Rail Road poised to reach Grand Central next year, Midtown will become an even more attractive option for the endpoint of a commute—and potentially take away one of the main draws of offices near the much-maligned Penn Station, even as officials work to extend the Metro-North Railroad to that station as well.

“Within our portfolio, clearly the buildings that surround Grand Central Terminal—whether Third Avenue, Lexington, Park—anything that's within a five- to 10-minute walk of Grand Central seems to be getting a lot more leasing velocity," said Steven Durels, SL Green's director of leasing. "With the LIRR coming to Grand Central, nobody's really going to need to sacrifice. The physical environment that surrounds Grand Central is a less chaotic assault on the senses than Penn Station."

Overdue new product

One Vanderbilt is about as close to Grand Central as an office building can possibly get. SL Green opened the building to much fanfare in September 2020, and it is more than 91% leased, the company said, despite the rough state of the office market.

Its proximity to Grand Central comes up in almost every discussion the company has about the building with prospective tenants, Durels said. That it is a new building plays a role in its appeal as well and makes it more competitive with places such as Hudson Yards, he said.

"Midtown didn't have as much new product and/or very heavily renovated product, so tenants were sacrificing on location and going to Hudson Yards," Durels said. "But now that you've seen some big buildings go through major renovations and new structures like One Vanderbilt coming online, tenants don't have to sacrifice location, and they're willing to pay for better-quality product and better-located product."

The newer office buildings are at least as important to Midtown's popularity as its being home to Grand Central. Between 2011 and 2021, the area had a net loss of 11.7 million square feet worth of large office tenants, mostly because they were flocking to newer developments in other parts of Manhattan, real estate brokerage Colliers found. Now, however, the neighborhood is getting almost 9 million square feet of new office space by 2024, which surpasses downtown for the future outlook. (CBRE considers Hudson Yards to be part of the Midtown office market, whereas Colliers considers it part of Midtown South.)

Although New Yorkers are never short on things to criticize about Penn Station, that area is poised for a major transformation, thanks in large part to Vornado Realty Trust's ambitious plans for the neighborhood. The company has already completed its redevelopment of 330 W. 34th St., and it is at work on transforming the Farley Building at 390 Ninth Ave. and two projects dubbed Penn 1 and Penn 2 into new office buildings.

Related Cos. spokesman Jon Weinstein cited Hudson Yards' proximity to Penn Station as a big reason why the developer has "zero concern" about its office buildings losing popularity coming out of the pandemic.

“Our Hudson Yards office space is 93% leased, with the highest rents in the city—reflective of the outsized demand," he said.

[NYguy]

https://www.thecity.nyc/platform/amp...-building-boom

As Hochul Launches Penn Station Revival Plan, Risky Bets Placed on Office Building Boom

By Greg David
November 4, 2021

Even if Gov. Kathy Hochul’s scaled-down plan to build office towers around Penn Station to revitalize the area and pay for a new transit station proceeds smoothly, construction on the first building wouldn’t begin for two years.

By then, it likely will be clear whether the city’s economy has rebounded from the pandemic recession and whether companies will fully embrace a return to the office.

But three of New York’s biggest real estate companies are not waiting around — instead, they’re wagering billion-dollar bets that COVID-spurred remote working and vacancies will give way to an office boom.

“Come on. Firms who [rely on remote work] are going to suffer,” SL Green CEO Marc Holiday dismissively told a stock analyst who questioned his commitment to building more office space during a recent conference call.

“The technology firms are growing. The startups are growing. Business services are growing,” he added.

SL Green, the city’s largest owner of commercial office space, is spending $3 billion to build a modern and expensive-to-rent office building on Madison Avenue between 23rd and 24th streets rising out of the historic home of the Metropolitan Life Insurance Co.

Meanwhile, RXR Realty and TF Cornerstone are anxiously awaiting final City Council approval to tear down the Hyatt Grand Central New York — the project that thrust Donald Trump into the New York spotlight in the early 1980s, long before his presidency.

The companies plan to replace the building over Grand Central Terminal with a modern 2.2 million-square-foot office tower that includes a modestly sized hotel and retail. RXR Realty and TF Cornerstone won’t put a price tag on its joint project just yet but agree that at least $3 billion will be needed.

“Companies are looking for buildings with amenities, modern infrastructure and access to transit that will help them draw their teams back to the office,” said Scott Rechler, the CEO of RXR.

The Grand Central project, now named 175 Park, if approved, will begin demolition next year.

The new building will be 83 stories, with a downsized Hyatt hotel and office space that will be among the costliest in the city. The project is rising under the Midtown East zoning hatched during the Bloomberg administration and finally enacted three years after de Blasio’s election. The goal: to spur new office construction in Midtown.

The group will spend upwards of $400 million improving the claustrophobic subway stop below the building. Plans call for raising the ceilings, restructuring the entrance hall, replacing passages and opening up the mezzanine level as well as adding 25,000 square feet of public terraces.

Deciding to proceed was an easy decision to make because of the success of SL Green’s One Vanderbilt, the city’s newest skyscraper, on the west side of Grand Central Terminal, Rechler said.

That building is more than 91% leased, despite the pandemic. It is getting rents of $150 to $200 a square foot for the lower floors, compared with an average of a little more than $70 for the neighborhood, recent real estate reports show.

SL Green is asking $322 a square foot for the top 93rd floor, which is more than the city’s record of $300 a square foot paid by the hedge fund Citadel at 425 Park Avenue in 2019.

“The building demonstrates the high demand for quality office space,” Rechler added.

…..Rechler, too, is talking to tech companies and feeling confident he can snare the anchor tenant that will allow him to get the financing he needs.

“Compared with a year ago, some of this risk has been mitigated by One Vanderbilt,” he said.

SL Green and the RXR Realty and TF Cornerstone partners are wagering that real estate winners will be modern buildings, despite high rents — and the losers will be older buildings with small floors, columns jutting through the space and outmoded office infrastructure.

“What the East Side zoning has done is put good policy in place where everyone knows the rules,” said Rechler.

[MAC123]

With One Vandy's success, East Side Access opening next year and city plannings vote of confidence, this project is a go in everything but name.

[SkyHigher]

A 1800ft+ Grand Central Tower either part of met life or not, to top things off in 2030's.

[jbermingham123]

Originally Posted by SkyHigher

A 1800ft+ Grand Central Tower either part of met life or not, to top things off in 2030's.

there must be a typo.. you spelled 2800 wrong

[pianowizard]

Originally Posted by jbermingham123

there must be a typo.. you spelled 2800 wrong

Did you mean 2800ft+, or 2800's? We can't be sure that NYC will still be around in the 29th century!

[JMKeynes]

Possible tenants for NY’s next icon.

https://therealdeal.com/2021/11/07/b...inues-to-grow/

[mrnyc]

Originally Posted by JMKeynes

Possible tenants for NY’s next icon.

https://therealdeal.com/2021/11/07/b...inues-to-grow/

that reminds me -- question -- is google going to build on the empty north lot next to their new hudson square building, or wat? is there a timeline?