The project will contribute nearly $19 billion annually to New York City’s gross domestic product.
Related Companies and Oxford Properties Group today released a report outlining the substantial economic impacts of the 28-acre Hudson Yards development on the New York City economy. Once fully operational, the development will contribute nearly $19 billion annually to New York City’s Gross Domestic Product (GDP), accounting for 2.5 percent of the citywide GDP. It will also contribute nearly $500 million annually in City taxes. Companies and buildings at Hudson Yards will bring 55,752 direct jobs to the new West Side neighborhood.
The report, prepared by Appleseed, a New York City-based consulting firm that provides economic research and analysis and economic development planning services to government, non-profit and corporate clients, found that Hudson Yards will be a significant contributor to New York City and Metropolitan Transportation Authority (MTA) revenues, both during construction and through its ongoing operations. Related and Oxford’s development is just one piece of the broader Hudson Yards district which can accommodate 50 million square feet of development including new parkland, office, hotel and retail space and 20,000 apartments with more than 5,000 affordable units.
U.S. Senator Charles Schumer said, “Hudson Yards is New York City surging forward into the 21st century, creating a new neighborhood, a new commercial center and new jobs on the far West Side. What were once vacant lots and old, underused industrial buildings are now teeming with construction jobs and will soon be turned into our modern factories, office buildings that will house a cornucopia of companies and organizations engaged in vast array of work. Hudson Yards will allow New York City to be better positioned regionally and to compete globally.”
Deputy Mayor Alicia Glen said, “The impact of Hudson Yards is real and this economic report is a clear affirmation that the city's infrastructure investment was a wise one. What's more, this smart, mixed-use development and that of the broader district will bring along with it thousands of affordable apartments and living-wage jobs for working New Yorkers, strengthening our people and our economy."
Stephen M. Ross, chairman of Related Companies, said, “Hudson Yards has already been a contributor to the city’s economy, and as it progresses, it will be an economic engine for the city and region. This 'city within a city' will generate significant tax benefits, contribute greatly to the city's GDP, create tens of thousands of jobs and deliver much needed Class A office space to ensure we remain globally competitive. Hudson Yards is the largest private development ever undertaken in the United States, but could never have occurred without the forward-thinking leadership of the City of New York, Senator Schumer and the MTA and the State. When complete, Hudson Yards will stand as a model of what can be achieved with bold vision and collaborative public-private partnership.”
Tom Wright, president, Regional Plan Association, said, “Hudson Yards will play a vital role in New York City and the region by revitalizing Manhattan’s far West Side and by creating the type of modern, mixed-use district that is being built by our competitors around the world.”
Mitchell L. Moss, director of the Rudin Center for Transportation at New York University, said, “This report highlights the significant economic impact of intelligent investment in transportation infrastructure on the development of Manhattan's West Side.”
New York City impact:
Once fully operational, the development will contribute nearly $19 billion annually to New York City’s Gross Domestic Product, accounting for 2.5 percent of the citywide GDP. Hudson Yards will also contribute $477.3 million in annual City tax revenues. During the estimated 13-year construction period, Hudson Yards will create 7,030 full-time jobs each year earning nearly $761 million. Hudson Yards has been a major contributor to the recovery of New York City’s construction industry, with the early years of the project, 2011-2014, accounting for approximately 16% of the total increase in construction industry employment.
Capital contributions to the MTA:
No project in New York City’s history has contributed or will contribute as much to the MTA as Hudson Yards, with the agency receiving $1.784 billion in revenues during the development and construction of the project. In addition, upon completion, Hudson Yards will contribute $89.3 million annually to the MTA.
Modernizing New York City's commercial office space and improving global competitiveness:
More than 64 percent of the City’s office space is currently in buildings that are at least 50 years old. The development of Hudson Yards is one of New York’s most important responses to the demand for new office space to keep New York competitive with other global markets. Hudson Yards will bring 10.4 million rentable square feet of new office space—an amount greater than the total supply of office space in downtown Stamford, Connecticut; downtown Austin, Texas; or downtown San Diego, California—into New York City’s marketplace.
While the economic impact of Hudson Yards may be concentrated in New York City, many other communities from across the country have benefitted and will benefit as well. The materials used to construct the Eastern Rail Yard, for example, have been sourced from nearly every state across the country. In fact, Related established a manufacturer of curtain wall systems, New Hudson Facades, and built a new facility in Lynwood, Pennsylvania.
About the 28-acre Hudson Yards Development:
Related and Oxford’s Hudson Yards is the largest private real estate development in the nation’s history. The site, which spans from 30th Street to 34th Street between 10th and 11th Avenues and 30th Street to 33rd Street between 11th and 12th Avenues, will include 17 million square feet of commercial and residential space. 10 Hudson Yards is home to Coach Inc., L’Oréal USA, The Boston Consulting Group, German software engineering firm SAP, VaynerMedia, Intersection and Sidewalk Labs. 30 Hudson Yards will house KKR, Wells Fargo Securities, TimeWarner, HBO and CNN; and 55 Hudson Yards will be home to Boies, Schiller & Flexner and Milbank, Tweed, Hadley & McCloy. The development will also include more than 100 shops and restaurants—including New York City’s first Neiman Marcus and new restaurants by famed chefs Thomas Keller, José Andrés and Costas Spiliadis; approximately 4,000 residences; 14 acres of public open space; a new 750-seat public school; and a 200-room Equinox® branded luxury hotel—all offering unparalleled amenities for residents, employees and guests. When completed in 2025, more than 125,000 people a day will either visit, work in or call Hudson Yards their home. For more information on Hudson Yards, please visit hudsonyardsnewyork.com. *All revenue numbers are in 2018 dollars.
Related Companies is the most prominent privately owned real estate firm in the United States. Formed over 40 years ago, Related is a fully integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi, London, São Paulo and Shanghai and boasts a team of approximately 3,000 professionals. The Company’s existing portfolio of real estate assets, valued at over $20 billion, is made up of best-in-class mixed-use, residential, retail, office and affordable properties in premier high-barrier-to-entry markets. Related has developed preeminent mixed-use projects such as Time Warner Center in New York and CityPlace in West Palm Beach. Related also manages approximately $3 billion of equity capital on behalf of sovereign wealth funds, public pension plans, multi-managers, endowments, and family offices. For more information about Related Companies, please visit www.related.com.
About Oxford Properties Group:
Oxford Properties Group is a global platform for real estate investment, development and management, with approximately 2,000 employees and $37 billion of real estate assets that it manages for itself and on behalf of its co-owners and investment partners. Established in 1960, Oxford was acquired in 2001 by OMERS, one of Canada's largest pension funds with over $72 billion in assets. Oxford has regional offices in Toronto, London and New York, each with investment, development and management professionals who have deep real estate expertise and local market insight. For more information, please visit www.oxfordproperties.com.