Six years after its first towers opened over the rail yards, Hudson Yards is signing big deals again. In the first half of 2025 it landed Manhattan’s largest new lease since 2019, Deloitte’s 800K SF, along with several nine-figure transactions at triple-digit rents. Blue-chip tenants will still pay for new space with modern amenities.
Trophy supply is consolidating into a handful of best-in-class towers, and tenants are moving to lock in long-term footprints before 70 Hudson Yards and 40 Hudson Yards deliver in 2028–29.
Capital markets and pricing
- Financing. Related and Oxford secured city approval for PILOT-style financing on Phase II, contingent on an anchor tenant for the proposed 40 Hudson Yards tower. (CoStar)
- Rents. CRE Daily reports upper-floor deals at Hudson Yards above $160 / SF, with select trades over $200 / SF, outperforming every other New York corridor. (CRE Daily)
- Conversions. Office-to-residential conversions could remove 16.5M SF from Manhattan’s inventory by 2027, tightening future vacancy and supporting pricing for modern Hudson Yards space. (New York Post)
Development and supply
| Building | Size | Status |
|---|---|---|
| 70 Hudson Yards | 1.1M SF, 60 stories | Breaking ground mid-2025; 73% pre-leased to Deloitte |
| 40 Hudson Yards | 2.2M SF planned | Awaiting an anchor tenant |
| The Spiral (66 Hudson Yards) | Existing tower | 94% leased; trophy rents of $125–225 / SF |
With no other ground-up projects under construction, what Hudson Yards delivers over the next five years is finite.
Outlook and tenant strategy
- Quality commands a premium. Expect trophy rents to outpace the market by 2–3% a year as Class B and C space elsewhere converts or sits empty.
- Concessions are compressing. Free rent on 10-year terms has already tightened from 18 to 14 months, and is likely to shrink further as pre-leasing at 70 Hudson Yards accelerates.
- Flex demand persists. WeWork’s 112K SF sublease shows enterprise flex is still a bridge for tenants eyeing new construction in 2027–28.
- ESG and amenities drive choice. Zero-carbon features, as at The Spiral and LEED Gold 55 Hudson Yards, are now standard requirements for finance and big tech tenants.