Sony to Potentially Anchor Tishman-Proposed Hudson Yards Tower

Sony is in the midst of negotiations to anchor Tishman Speyer’s planned 99 Hudson Blvd. office tower. If successfully concluded, the deal will enable the electronics giant to move its operations from its current headquarters at 11 Madison Ave.

Erik Schamll and Allyson Bowen of Savills are in charge of negotiations on behalf of the Japanese multinational conglomerate.

The proposed 99 Hudson Blvd. project is expected to add roughly 1.2 million square feet of prime Manhattan, NY, office space to the city’s inventory. Situated just opposite the Javits Center and boasting a clear view of the Hudson River, the 48-story development is set to break ground in early December, according to public filings.

Backed by $1.5 billion in debt and $1.2 billion in equity, the LEED Gold tower is expected to house 5,900 workers and generate more than $850 million in total direct and indirect tax revenue. It’s estimated to be tenant-ready around 2030.

Although architect Henning Larsen and initial renderings were unveiled in 2019, the plans are expected to be revised to expand the space, accommodating Sony’s specific requirements and post-pandemic office preferences.

At the same time, Tishman Speyer has requested $92 million in property and mortgage tax exemptions from the Industrial Development Agency for its Hudson Yards tower, proposing payments in lieu of taxes, instead. However, vote on the package was delayed to November 17 due to political opposition.

Although the size of the lease being negotiated with Tishman has not been disclosed, Sony’s motivation for moving locations is linked to the inability to increase its 568,000-square-foot footprint within 11 Madison Ave., as well as its desire for a more collaborative workplace for its workers.

The 30-story, SL Green-owned office tower at 11 Madison Ave. was originally designed by Harvey Wiley Corbett and Dan Everett Wade in 1928 as a 100-story mega-tower, but construction was scaled back during the Great Depression. The property was eventually completed in the 1950s.

Sony ended up leasing its current headquarters after selling 550 Madison Ave. in 2012 to Chetrit Group for $1.1 billion. That building later changed hands once again in 2015, when it was acquired by Olayan America for $1.4 billion.