The landscape of New York City is about to be altered forever, with the addition of the neighborhood known as Hudson Yards. Construction efforts continue to transform the no-mans-land in the West 30s into a thriving commercial and residential hub with ongoing development over the 26-acre site.
Hudson Yards is the largest private real estate development in the history of the United States and the largest development in New York City since Rockefeller Center. The development site plans to include more than 18M square feet of commercial and residential space. This includes over 100 shops, restaurants, office towers, over 4,000 residencies as well as a hotel, public school and plenty of open space. Not only that, but the area has the potential to become one of the most important centers for financial services.
Hudson Yards has—faster than anyone expected—fulfilled the two goals of the government officials who set it in motion: create capacity for the New York economy to expand and revive a moribund waterfront section of Manhattan. Its success has been facilitated by more than $600 million in direct public investment and a very lucrative tax break. Hudson Yards is viable because the city paid to extend the 7 line to the area. While the $3 billion in bonds will someday be repaid by tax revenue generated by Hudson Yards, the city has to cover interest of over $359 million (and growing).
Government officials fought for a significant amount of permanent affordable housing on the site that could have been an expansive stadium set to attract the summer Olympics in 2012. Instead, they paved the way for ample open space for parks and recreation, a brand new school, and ensuring mixed-use, so that if there was going to be retail, there would also be residential. The planning just for the rezoning required thousands of hours of community board meeting.
But in the decade-plus since the rezoning, big-name developers have cashed in on the neighborhood’s development boom. Brookfield is building its megaproject known as Manhattan West; The Moinian Group has broken ground on its 940-foot-tall office tower, 3 Hudson Boulevard; and Tishman Speyer is moving forward with a plan to build a supertall office building designed by Bjarke Ingels.
To measure the area of growth in the Reonomy platform, we looked at growth within the boundaries of the Special Hudson Yards District, which roughly runs from 30th Street to 41st Street between 11th and Eighth Avenues.
Generally, the sales prices in midtown west have seen a rise in value, with a large spike in 2014.
In comparison to the 26-acre site of Hudson Yards development directly, there is a more steady general trend of increasing property values in the area around Hudson Yards than within the project itself. While there were a few huge purchases in the explicit area that caused a sharp spike in the average and total sale amount for the year, the number of sales actually stayed fairly consistent (ignoring the direct effects of the recession).
Similarly to Midtown West, the sales volume or number of sales in the area has not changed much, but what has been effected is the price of sales.
Large tech, especially technology divisions of financial and insurance industries, are looking to move west in midtown. The west side is becoming increasingly desirable as their employees live in Chelsea, Central Park West, and Hell’s Kitchen. As more offices and people move far west – the area will only continue to increase in value.
Hudson Yards and surrounding development is opening the door for the West Side to become a new hot spot for New York. – connecting the neighborhoods of Chelsea and Hell’s Kitchen. By creating a vibrant mixed-use neighborhood, with shops and amenities galore, as well as the attraction of the high line and public spaces like the new Hudson Park and Boulevard. The new park is four acres, from West 33rd to 39th St and bordered by Hudson Boulevard.
While it has yet to be seen just how vibrant the rest of midtown west will become, the development continues to change the landscape and encourage new residents and visitors to the area.