Facebook Leases 1.5 MSF at New York City’s Hudson Yards
- Nov 14, 2019
Facebook has leased more than 1.5 million square feet of office space across three buildings at Hudson Yards, the $16 billion Manhattan mega-project developed by Related Cos. and Oxford Properties Group. The transaction is one of the largest office leases ever inked in the borough and includes roughly 1.2 million square feet at 50 Hudson Yards, 265,000 square feet at 30 Hudson Yards and 57,000 square feet at 55 Hudson Yards, for a grand total of 30 floors.
The transaction will more than double Facebook’s existing office footprint in Manhattan, where it currently occupies more than 1 million square feet, split between 770 Broadway in lower Manhattan’s NoHo district and 225 Park Ave. S. in Gramercy Park. The company will keep its existing space as it expands into Hudson Yards, a Facebook representative told Commercial Property Executive.
The social media firm plans to start moving into its newly leased premises next year, according to a statement. Cushman & Wakefield negotiated the lease deal on behalf of Facebook while Related was represented in house.
Accounting for the vast majority of Facebook’s new lease, 50 Hudson Yards is a 78-story tower scheduled for completion in 2022. Related and Oxford are partnering with Mitsui Fudosan America to deliver the $4 billion, 2.9 million-square-foot property. Mitsui Fudosan America, the U.S. arm of Japan’s largest real estate firm, bought a 90 percent stake in the project in 2017.
The LEED Gold-designed project, which will be anchored by BlackRock’s world headquarters, is now 75 percent leased. The building is rising at the northwest corner of 33rd Street and 10th Avenue, with direct access to the No. 7 Line subway station below.
Social giant goes supertall
The neighboring 30 Hudson Yards, the second-tallest office building in New York City, officially opened in March at the southwest corner of 33rd Street and 10th Avenue. Facebook’s new space in the 1,296-foot-tall, 2.6 million-square-foot asset will coexist with the global headquarters of WarnerMedia, which will span 1.5 million square feet across 26 floors.
The supertall building is now fully committed to a tenant roster that includes Kohlberg, Kravis & Roberts (KKR), Wells Fargo Securities and DNB. Kramer Levin served as condominium counsel to Related for the leasing of condo space at the property.
Rounding out Facebook’s giant lease commitment is 55 Hudson Yards, a 51-story tower at the southeast corner of 34th Street and 11th Avenue. The building, which began welcoming tenants this year, is 99 percent committed to firms including Milbank, Silver Lake and Mount Sinai Health System. Mitsui Fudosan America bought a majority stake in the project in 2014.
Hudson Yards officially opened in March, nearly a decade after the New York City Council approved the plan to rezone and develop a 28-acre site on the Far West Side. The project atop a working rail yard encompasses more than 18 million square feet of commercial and residential space, more than 100 shops and restaurants and 14 acres of open space.
Crain’s New York Business reported in June that Facebook was close to a deal for more than 1 million square feet of space at 50 Hudson Yards.