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July 2017

July 2017 » Market Analysis » NY New Developments

July 2017 New York New Developments

New York Major Developments:

NYU Langone Medical Center is opening a 50,000-square-foot biotech co-working center at 180 Varick Street, a project that hopes to help compete with biotech hubs like Boston and San Francisco. NYU Langone invested $10 million over the last several years on upgrades at 180 Varick Street and is investing another $5 million. The state’s economic development arm Empire State Development is contributing another $2 million.

New York City is the most expensive city in the world when renting flexible, short-term office space. The average monthly price to rent a workstation in flexible offices for one person was $1,100 for 12 months.

Italian cosmetics company Kiko Milano inked a 1,100-square-foot lease at 1515 Broadway. The deal comes as the retail market is showing increasing signs of stress.

The state Assembly has signed off on granting the city design-build authority, but will the Republican-controlled Senate agree? The bill seeks to allow city agencies to employ design-build, a project delivery system where the owner signs a contract with one entity: the construction and design team.

SL Green Realty is planning to build a Financial District office tower near the World Trade Center. They received permits to begin demolishing 183 and 187 Broadway and 5-7 Dey Street.

Eastgate Realty obtained a $250 million loan to refinance its 25-story office building at 99 Park Avenue in Murray Hill.

Pennsy, the food hall at 2 Pennsylvania Station, has shut down and will reopen on July 17th. The real estate investment trust is bringing in new vendors and expanding the outdoor seating area.

The Canadian company that owns the Saks Fifth Avenue flagship store is under pressure to go private or sell off its real estate assets, which are worth billions.

New York City lost more than 11 million square feet of industrial space to re-zonings between 2007 and 2016. Manhattan lost 4.54 million square feet of industrial space across 230 lots.

The Cipriani family plans to open a food market at GID Development Group’s Waterline Square on the Upper West Side. The family behind the famed restaurants signed a lease to open a 28,000-square-foot food hall with a market, restaurants and fast-casual options at 2 Waterline Square.

Vornado Realty Trust, Related Companies and Skanska have finalized a deal with the state to build a $1.6 billion train hall at James A. Farley Post Office. The new train hall will feature 700,000 square feet of office and retail space and a 255,000-square-foot train hall for both Amtrak and the Long Island Rail Road. The project is expected to be complete in 2022.

The city may be on the hook for nearly $100 million in unexpected additional costs related to redeveloping Hudson Yards. An additional $96 million is needed to fund the extension of the No. 7 subway line and the planned four acres of park and open space known as Hudson Park & Boulevard. The construction of the latter is expected to cost an additional $64 million, while the subway extension would require another $32 million.

The New York City Construction Authority bought a vacant lot in Gowanus where the agency plans to build a pre-K center for $15 million. The Construction Authority announced plans to build a 180-seat school on the lot located at 197 Ninth Street, in 2015. The seller, Derby Textile Company, has owned the site since 1971, and the last building on the property burned in 1989.

Extell Development bought 45,000 square feet of air rights to expand the 445-room Hard Rock Hotel it is building on West 48th Street. The air rights are from a small park that is next door to 1221 Sixth Avenue. The park and the Sixth Avenue building belong to Rockefeller Group. The cost of the rights was not made known. The project could now be as large as 225,000 square feet.
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