We're only days into 2011, but the year is already proving to be a big one for Hudson Yards, one of the more tortured megaprojects currently on the boards. The highlights: The Related Companies is gearing up to begin work on the first of many skyscrapers at the remote Far West Side site, we know what that tower might look like come 2015, and the propaganda about Hudson Yards being the "next great neighborhood" is already worming its way into our brains. But there's still the matter of filling all that glassy new real estate with warm bodies, and though luxury goods retailer Coach has expressed interest in taking 600,000 square feet of space in the first building, there's still no signed deal. What's a megadeveloper to do? Easy: Stop trying to make money. If only our landlord would adopt the same strategy!
In an enlightening report, Crain's discusses what Hudson Yards has going for it (an improving economy, the High Line, the 7 train extension) and what's holding it back (location, competition for commercial tenants, inevitable construction delays). The story also fills in more details about the master plan, including a mall twice the size of Time Warner Center. As for attracting a pioneering office occupant, Related plans on building the tower and selling it back to the tenant at cost, or charging only enough rent to cover construction. Of course this short-term generosity will yield long-term profits if Hudson Yards catches on, but when was the last time you heard of a developer just looking to break even on a new tower? Shouldn't Rod Sterling be narrating the end of this blog post?
· Hudson Yards development tries to tempt a tenant [Crain's]
· Hudson Yards coverage [Curbed]