In an exclusive revelation to the New York Post, Jeff Blau, CEO of Related Cos. has divulged alterations to the company’s proposed $10 billion Hudson Yards casino complex in New York. The new pitch calls for the project to commence with a 3 million-square-foot high-rise flying the Wynn flag and featuring a 1,700-room hotel as well as 250,000 square feet of gaming space and elite restaurant and retail offerings. Related intends to retain the previously revealed 5.5-acre public green park and 1 million-square-foot multifamily tower. However, perhaps the biggest surprise in the new proposal is the 2 million-square-foot office tower that would sprout up on an undeveloped 6.5-acre segment of the site.
Related clearly has high hopes for the Manhattan office market way down the road. Nationally, the office sector continues to experience challenges in the post-pandemic climate, with companies downgrading space in the hybrid-work environment and relocating to smaller but higher-end digs. New York is no exception to the struggle. In its recently released quarterly Real Estate Broker Confidence Index report, the Real Estate Board of New York found that commercial broker confidence has reached new lows. However, New York has a history of coming back in real estate downturns stronger than ever and the flight to quality in the office sector rages on, so Related’s proposal for a state-of-the-art office high-rise at its gaming complex could prove to be a brilliant move. Related, which would develop the project in partnership with Oxford Properties, is not the only developer eager to claim the gaming license. SL Green Realty Corp. and Caesars Entertainment have submitted a proposal, as has Vornado Realty Trust.