Global consulting and advisory services provider Deloitte has chosen Hudson Yards as the location for its new North American headquarters. The company will lease nearly three-quarters of the planned 1.1-million-square-foot office building at 70 Hudson Yards, which is part of Related Companies’ extensive mixed-use development on Manhattan’s West Side.
The owner secured this commitment for 800,000 square feet of office space from Deloitte prior to commencing construction, which is expected to begin in June. Designed collaboratively by Roger Ferris + Partners and Gensler, the tower rises more than 60 stories. This ambitious project will be the largest ground-up office development to break ground in the U.S. since the start of the pandemic and is also poised to be New York City’s inaugural zero-carbon-emission skyscraper.
Deloitte’s move to 70 Hudson Yards from its current North American headquarters at 30 Rockefeller Plaza will provide its employees and guests with a range of modern amenities, including a sizable event area; private dining facilities; a media and podcast studio; and convenient “red eye” suites for post-flight refreshment. Additionally, Deloitte will have access to an expansive, 8,000-square-foot outdoor terrace within the new building.
Built over a former rail yard, the 12-million-square-foot Hudson Yards project will host a variety of commercial and residential spaces, complemented by a diverse array of retail stores, restaurants and public areas. Among the prominent office tenants already established within Hudson Yards are major corporations such as Wells Fargo, BlackRock and KKR.
Related Companies’ success in securing significant pre-construction leasing at 70 Hudson Yards could serve as an encouraging sign for other developers, including SL Green Realty and BXP, by potentially motivating them to proceed with their own proposed projects despite the current global trade tensions and economic uncertainties.
Notably, the limited amount of new construction since the onset of the COVID-19 pandemic has brought down vacancy rates across Manhattan as companies implementing return-to-office policies seek new workspaces. Now, Manhattan landlords report that tenants are willing to pay rents exceeding $200 per square foot for premier new buildings, which represents some of the highest rates in the United States.
For instance, some of the most significant lease agreements finalized during the first quarter included trading firm Jane Street’s expansion to almost 1 million square feet at Brookfield’s 250 Vesey St., the United Nations’ renewal of its 425,190-square-foot space at 2 United Nations Plaza, and media company Horizon Media’s 360,000-square-foot commitment at 75 Varick St. Amazon and Santander Bank were among the major companies that also secured new office space during the last quarter.
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