There is no question that Hudson Yards is the most desirable New York City neighborhood when it comes to modern class A office space. Its glass-clad, state-of-the-art commercial towers have attracted numerous high-profile tenants and convinced them to leave their outdated offices in the Plaza District or Fifth Avenue. But what makes this submarket so unique, and why are businesses willing to pay such a premium for office space in Hudson Yards?
Large corporate tenants prefer modern office space with a high level of amenities and technologically innovative features that older properties lack. Apart from Hudson Yards, Midtown Manhattan lacks an inventory of modern Class A office space. Many tenants have been drawn to Hudson Yards by modern amenities and technologically innovative features that older properties in neighborhoods such as Grand Central lack. These business tenants also appreciate highly sought-after extras, such as outdoor terraces, rooftop gardens, floor-to-ceiling windows, or column-free, flexible office space. In addition, the new Hudson Yards office towers also cater to larger corporate tenants looking to lease full floors, or even multiple floors in the same building, to accommodate their growing employee base.
Affordable office space in Hudson Yards, the needle in the haystack?
Because these larger companies are financially stable, they can afford the high prices commanded in Hudson Yards. This also bodes well for landlords, who have fewer tenants to manage, which means a lower risk of default. On the other hand, this is not good news for smaller tenants, who often have difficulty finding reasonably-priced office space for rent in Hudson Yards. There are, however, a few options worth considering,
Below is a round-up of 5 office buildings in Hudson Yards that offer smaller spaces at a lower price point, fit for startups or mid-sized businesses. Regus offers flex space in several of these Hudson Yards properties. These flex spaces allow small firms the option of acquiring office space at Hudson Yards at a relatively affordable price point.
There are several Hudson Yards office towers still under construction. This opens a unique opportunity for larger office tenants: landlords will often provide a discount for negotiating a deal before construction is finished. Of course, rents will vary for each property, depending on the lease’s terms, length, and size.
1. 547 West 27th Street | Landmark Arts Building
547 West 27th Street is also known as the Landmark Arts Building. It s a mixed-use commercial building featuring predominantly gallery space. Originally built back in 1900 and maintains its original industrial charm. The Landmark Arts Building is an office building bordering Chelsea and Hudson Yards. The Class B property has a loft-like feel and incorporates exposed ceilings, hardwood floors, abundant natural light, and state-of-the-art finishes.
Spaces range from 800 square feet to a 17,500-square-foot full floor. Asking rents start in the high $40s to low $50s. Factors determining what you will pay are the length of the lease, cost of the build-out, the desirability of your space, as well as tenant credibility, and financial stability.
2. 450 West 31st Street
The 1918-built office condominium property at 450 West 31st Street is ideal for smaller creative tenants looking for quality office space in the buzzing Hudson Yards. Tenants of this historic building include celebrity photographers, designers, media companies, and architects, such as The Real Deal, Daylight Studio, and Steven Holl Architects.
The Class B asset offers spaces ranging from 4,000 to 11,000 square feet in size. Asking rents start at $40 per square foot. Amenities include a wraparound, 4,750-square-foot terrace with views of Hudson Yards, high ceilings, large windows, a large basement storage area, and brand-new elevators.
3. 424-438 West 33rd Street | The Lofts at Manhattan West
424-438 West 33rd Street is a Class B office condominium. It is also known as The Lofts of Manhattan West. Originally it was built as a manufacturing facility in the early 1900s. It was converted to loft-style office space in 2002 and renovated in 2018. Brookfield Properties owns the buildings. Asking rents range between $45 and $65 per square foot. The building has space for rent ranging between 5,900 to 14,800 square feet.
If your business seeks a flexible lease term or a smaller office, coworking provider Regus offers flex office rentals on the 7th, 8th, 9th, and 10th floors. These spaces range from 100 to 14,800 square feet, accommodating any office tenant. Rents for Regus coworking spaces are only $1,500-$2,500 per month, depending on the size and the length of the lease. The various pricing options make The Lofts at Manhattan West the most affordable office destination in Hudson Yards.
4. 401 Ninth Avenue | One Manhattan West
The 2.3 million-square-foot office tower at 401 Ninth Avenue was completed in 2019. Brookfield Properties owns and manages the 401 Ninth Avenue. The 67-story, Class A building offers affordable subleasing opportunities on the 50th, 51st, and 52nd floors. These spaces are available for sublease through May 2035. Each of them is close to 31,000 square feet of rentable office space.
Direct leases at One Manhattan West range from $80 to over $100 per square foot. Sublease space should at One Manhattan West should lease at rents 10%-30% below direct deals. Amenities at One Manhattan West include a 2-acre public park, column-free interiors, and floor-to-ceiling windows.
5. 50 Hudson Yards
Construction of 50 Hudson Yards is scheduled for completion by April of 2022. This 2.9 million-square-foot, 58-story Class A office tower was developed by The Related Companies. It has floor plates ranging from 47,500 to over 60,000 square feet and incorporates premier retail space on the ground floor. 50 Hudson Yards will be one of the city’s most luxurious and most expensive office buildings.
There are currently five spaces available for rent at the tower. Asking rents start at $100 per square foot and go as high as $130 per square foot. Should you decide to negotiate a price for office space at 50 Hudson Yards, you will be in good company. BlackRock and Facebook have already signed on to occupy office space in the new Hudson Yards tower.
If your company is willing to negotiate and sign a lease for office space at 50 Hudson Yards before construction of the building is completed you may be able to negotiate rent reductions, construction modification, and free rent that may be unavailable once construction is completed.
Are you thinking of setting up your business in a convenient location in Manhattan? Are you looking to lease space in a modern building offering state-of-the-art amenities? To learn about available office space, call Metro Manhattan Office Space at (212) 444-2241 or email us at [email protected]