Hudson Yards — the largest private real estate development in U.S. history and home to a roster of blue‑chip office tenants — is fully occupied as New York’s office market sits at an “all‑time peak,” according to Related Cos. CEO Jeff Blau.
“When we started marketing Hudson Yards 15 years ago, all I would hear from CEOs is, ‘Where is Hudson Yards?’ and ‘Why would I ever move my company there?’” Blau said Wednesday at The Real Deal's NYC Real Estate Forum. “We've really turned Hudson Yards into the center of business and commerce for New York City. Today, anybody that's looking at leasing space at scale at least shows up ... and sees what we have right now. We don't have any space. We're 100% occupied.”
The full occupancy refers to Hudson Yards' office space, a spokesperson told CoStar News.
Related developed the 28‑acre Hudson Yards campus with Oxford Properties. The complex includes four office towers — 10 Hudson Yards, 30 Hudson Yards, 50 Hudson Yards and 55 Hudson Yards — and counts among its major tenants Coach parent Tapestry, investment firms BlackRock and KKR, and Facebook parent Meta. The campus also features the Shops at Hudson Yards, an Equinox hotel, residential towers and the Vessel art installation as its signature public attraction.
Hudson Yards — along with Brookfield Properties’ Manhattan West and Vornado Realty Trust’s Penn District around Penn Station to the east — stands out as one of Manhattan’s in‑demand trophy office clusters, attracting well‑capitalized tenants willing to pay record rents amid the broader flight‑to‑quality trend. New York has outperformed other major U.S. cities in office recovery since the pandemic.
“New York is extremely resilient,” Blau said. “The office market is at an all-time peak. Companies want to be here. … The main reason they're here is that people want to be here. ... As difficult and as expensive as it is here, this is where talent lies, and companies will continue to come here as long as we create an environment that attracts talent.”
Blau said Related will “always be based here in New York,” where the firm was founded, even as it has expanded beyond the city and faces evolving political and regulatory pressures. Related founder Stephen Ross moved to Florida during the pandemic and now leads Related Ross, an affiliated firm focusing on South Florida development. Related, meanwhile, has broadened its footprint into other property types and regions, including data center developments in states such as Michigan and Wyoming.
Political tension runs high
The company’s continued bet on New York comes amid heightened political debate over taxes on high‑income earners and large companies. New York Mayor Zohran Mamdani’s push to “tax the rich” has raised concerns among some business leaders that it could accelerate the departure of companies and wealthy residents from the city. Vornado Realty Trust CEO Steven Roth this week delivered a sharp rebuke of the phrase “tax the rich,” while hedge fund Citadel signaled that its planned $6 billion development of 350 Park Ave. — a skyline-shaping office project — is not a foregone conclusion.
Blau’s remarks came despite repeated interruptions at the event by protesters, who shouted “shame on you” in opposition to a roughly $2 billion city‑backed financing plan that Related is pursuing to advance the second phase of Hudson Yards.
“Despite the protesters, I’m committed to New York City,” Blau said. “I still believe this is where people want to go, where companies want to locate, and that it’s a great place to do business.”
In Manhattan, Related remains an active office developer. The firm is building 70 Hudson Yards, where Deloitte will relocate its North American headquarters. The tower is about 60 percent leased, the Related spokesperson told CoStar News. Related is also developing 625 Madison Ave. on Manhattan’s east side — the site of its former headquarters — after acquiring the property from SL Green Realty Trust.
“We’re very active developers of brand‑new trophy office buildings,” Blau said. “We call them Class Double A office buildings.”
Related also plans to build an office tower west of the existing Hudson Yards campus as part of the project’s second phase, which includes housing and a large public park. The plan moved forward after the developer last year abandoned its bid for a downstate casino license. The City Council later approved a $2 billion financing plan to construct a platform over an active rail storage yard that must be built before development can proceed.