Manhattan’s distressed office market is still struggling to show definite signs of recovery. As of June, there were 34 office projects underway in Manhattan, totaling approximately 24.1 million square feet, according to CommercialEdge.
By the end of May, the market’s under-construction pipeline represented 4.0 percent of existing stock, significantly exceeding the 2.4 percent national average. But when adding planned supply to the mix, the figure climbs to 5.5 percent, falling behind the U.S. average of 5.9 percent. The contracted planned-development pipeline still calls for investor confidence, underpinned by the sector’s slow-paced comeback.
Only two projects have broken ground this year within the borough, while three developments encompassing 462,482 square feet delivered so far, with the bulk of current construction activity concentrating around Hudson Yards. By comparison, throughout a pandemic-dominated 2020, a total of nine projects commenced construction in the same period, four of which exceeded 1 million square feet, while 15 projects delivered, totaling 4.3 million square feet.
|Rank||Property Name||Square Feet||Owner||Anticipated Completion|
|1||50 Hudson Yards||2,850,000||Mitsui Fudosan America, Related Cos., Oxford Properties Group||01/2022|
|2||The Spiral||2,773,000||Tishman Speyer||09/2022|
|3||270 Park||2,432,635||JPMorgan Asset Management||06/2024|
|4||Two Manhattan West||1,942,245||Brookfield Properties, Qatar Investment Authority||03/2023|
|5||3 Hudson Boulevard||1,850,000||The Moinian Group, Boston Properties||12/2023|
5. 3 Hudson Boulevard
Developed by a joint venture of The Moinian Group and Boston Properties, 3 Hudson Boulevard is currently Manhattan’s fifth-largest office project in the making. Situated adjacent to Hudson Boulevard Park and across from the Javits Convention Center, the 56-story glass tower will total 1,850,000-square feet. For the last decade, The Metropolitan Transportation Authority has used the site for construction staging.
Previously known as GiraSole, construction on the $3 billion skyscraper commenced in 2016. Envisioned by FXFOWLE Architects, the high-rise will reach 940 feet in height and is slated to include a multistory podium with 50,000-square-foot floor plates, while the slender tower above will offer 35,000-square-foot plates. Completion is anticipated by the end of 2023.
4. Two Manhattan West
Brookfield Properties, in a partnership with Qatar Investment Authority, is constructing Two Manhattan West, a 1.9 million square-foot tower on the Far West Side of the borough. The neighboring 2.1 million square-foot, 67-story One Manhattan West opened in October 2019 as the first of Brookfield’s 8-acre Manhattan West complex. Roughly the same time, Two Manhattan West locked in its anchor tenant, Cravath, Swaine & Moore LLP. The law firm inked a 481,000-square-foot, 13-story lease at the 58-story high-rise, which will serve as its global headquarters.
Slated to hit 935 feet, the Skidmore Owings & Merrill-designed Two Manhattan West tower is the final component of the five-building Manhattan West ensemble. Construction is scheduled to wrap up in the first half of 2023.
3. 270 Park
J.P. Morgan Asset Management has completed the demolition of its former 52-story headquarters, known as the Union Carbide Building, at 270 Park Ave., in Midtown East. The multinational investment bank’s 1950s tower near Grand Central became the tallest voluntarily razed building in the world.
J.P. Morgan is erecting a new, 2.4 million-square-foot skyscraper as a replacement for the dated tower, planned to become the second tallest structure in Manhattan after One World Trade Center. Set to rise 1,425 feet, construction of the new supertall office building is anticipated to wrap up in 2024.
2. The Spiral
The second-largest development under construction in the borough is Tishman Speyer’s 2.8 million-square-foot The Spiral in Hudson Yards, rising at the intersection of The High Line and the Bella Abzug Park. Designer by famed architect Bjarke Ingels, the 65-story Class A tower is slated to open in the second half of 2022.
In 2018, Blackstone Mortgage Trust provided $1.8 billion in financing for the construction of the project. Pharma giant Pfizer will relocate its global headquarters to The Spiral, where it will occupy 800,000 square feet. In January 2020, law firm Debevoise & Plimpton LLP signed up for 530,000 square feet at the tower, inking a 20-year commitment.
1. 50 Hudson Yards
Mitsui Fudosan, Related Cos. and Oxford Properties Group are behind the biggest office project underway in Manhattan, known as 50 Hudson Yards, with Mitsui Fudosan owning a 90 stake in the building. Set to occupy a full block, the tower is slated to rise 1,011 feet and span 2.9 million gross feet across 58 stories.
The massive skyscraper landed $3.8 billion in financing in 2017, broke ground in May 2018 and topped out in February this year. The Foster + Partners-designed structure, with a direct subway connection, will target LEED Gold certification. In February, 75 percent of tenants were locked in, including BlackRock and Facebook, which will span a combined footprint of nearly 2.2 million square feet.