I suspect that this building already has a tenant lined up. However, it seems clear that a lot of companies (beyond the ones we already know of) will be seeking space in new towers and that many iconic supertowers will rise.
Here’s an article in the October 9, 2021 edition of the
Financial Times, which is about the demand for new office space in NY:
"Manhattan’s office towers are a tale of the haves and the have-nots
Post-pandemic shake-up in New York’s buildings could change the nature of the city."
Joshua Chaffin in New York 10 HOURS AGO
When the mayor and other dignitaries gathered a year ago to cut the ribbon on One Vanderbilt, one of Manhattan’s newest and most advanced office towers, the festivities were marred by a pandemic that has raised existential questions about the future of such buildings.
Yet One Vanderbilt is now more than 90 per cent leased. Its newest tenant is UiPath, a robotics software company that last month signed a 15-year lease to take the entire 60th floor.
“I wish I had 20 more floors because if I did we could lease them,” Marc Holliday, chief executive of SL Green, One Vanderbilt’s developer and New York’s largest office landlord, crowed.
A few blocks away, another Manhattan office building was suffering a different fate. 850 Third Avenue, a glass-and-steel edifice that opened its doors in 1960, was almost half vacant and its owner, the Chetrit Group, was struggling to avoid foreclosure after falling behind on its mortgage.
The diverging fortunes of those towers says much about the world’s largest office market after 18 months of pandemic: the most sought-after buildings — whether they are brand new, like One Vanderbilt, or newly renovated, like Google’s $2.1bn St John’s Terminal — are still attracting tenants and fetching top rents while the city’s large stock of dated towers is suffering...
As the pandemic drags on and companies struggle to bring employees back to their desks, that conviction is leading many real estate executives to anticipate a generational shake-up in New York’s office buildings that could change the city itself.
They believe owners will soon have to decide whether they are prepared to invest hundreds of millions of dollars, as Marx and others have done, to “reposition” older buildings with the features that were popularised by west coast technology companies and which have now become de rigueur....
“We’re going to see a lot of new buildings over the next 10 years,” Michael Cohen, president of the New York region at Colliers, a commercial real estate firm, predicted, noting that many landlords in Midtown have inserted “demolition provisions” into leases to make it easier to tear down buildings, if they opt to do so. “Capital is circling the city, looking for opportunities,” he said....
“In any cycle like this, you’re going to see pressure on the bottom 10, 15, 20 per cent of the inventory that’s going to shake out,” Holliday said. “There are buildings that are going to be demolished and make way for new construction.”
https://www.ft.com/content/0fc60c68-...c-f66272793212
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