By Matthew DeRose – CEO, Nomad Group

Snapshot

Six years after the first glass façades gleamed over the rail yards, Hudson Yards is back in deal‑making mode. In just the first half of 2025, the submarket landed Manhattan’s largest new lease since 2019 (Deloitte, 800 K SF) and notched several nine‑figure, triple‑digit‑rent transactions—proof that blue‑chip tenants will still pay up for brand‑new space with next‑gen amenities.

Key Stats at a Glance

*Estimates derived from Colliers & JLL Q1 2025 datasets plus Nomad Group field research.

Office Leasing Momentum

Why it matters: Trophy supply is consolidating into a handful of best‑in‑class towers. Tenants are moving aggressively to lock long‑term footprints before 70 HY and 40 HY deliver in 2028‑29.

Capital Markets & Pipeline

• Financing Tailwinds: Related/Oxford secured city approval for a PILOT‑style financing on Phase II, contingent on an anchor tenant for the proposed 40 HY tower. (costar.com)
• Rising Rents: CRE Daily reports upper‑floor deals at Hudson Yards eclipsing $160 / SF with select trades over $200 / SF, outperforming every other NYC corridor. (credaily.com)
• Conversions Shrink Supply: City‑wide office‑to‑residential conversions could erase 16.5 M SF in Manhattan by 2027, tightening future vacancy and bolstering pricing power for modern Hudson Yards stock. (nypost.com)

Development & Supply

• 70 Hudson Yards: 1.1 M SF, 60‑story tower breaking ground mid‑2025; Deloitte pre‑leased 73 %.
• 40 Hudson Yards: 2.2 M SF planned; awaits anchor. (colliers.com)
• The Spiral (66 HY): Now 94 % leased; trophy rents range $125–225 / SF. (nypost.com)

With no other ground‑up projects under construction, Hudson Yards’ deliverables over the next five years are finite—good news for landlords, and a clock ticking for tenants seeking expansion space.

Outlook & Tenant Strategy

1. “Flight‑to‑Quality” = Premiums: Expect trophy rents to outpace the market by 2‑3 % annually as Class B/C stock elsewhere converts or languishes.
2. Concession Compression: Free‑rent packages have already tightened from 18 to 14 months on 10‑year terms; expect further shrinkage as pre‑leasing at 70 HY accelerates.
3. Flex Demand Persists: WeWork’s 112 K SF sublease shows that enterprise flex remains a bridge strategy for tenants eyeing 2027‑28 new construction.
4. ESG & Amenities Drive Choice: Zero‑carbon features (e.g., The Spiral, LEED‑Gold 55 HY) are now standard check‑boxes for finance and Big Tech alike.

Ready to Stake Your Claim?

Nomad Group sits at the heart of Hudson Yards—managing tours, test‑fits, and off‑market intel across the entire West Side mega‑district. Leverage our Office Space Calculator to model headcount scenarios or tap our “📷 Virtual Walkthrough” database for 360° previews of available floors.

Let’s connect. Drop us a line to discuss how Hudson Yards might anchor your next phase of growth.

Written by Matthew DeRose, Nomad Group CEO & eternal optimist on west‑side innovation.