Deloitte to lease massive new office space in Manhattan
Deloitte has agreed to lease approximately three-quarters of a yet-to-be-built office tower in Manhattan, according to a report from The Wall Street Journal.
The WSJ says Deloitte’s lease is the latest sign that the high-end office market in New York is heating back up.
Deloitte will move its US headquarters to the forthcoming Hudson Yards development in Manhattan’s West Side – taking up 800,000 square feet of the 1.1-million-square-foot, 60-floor tower named 70 Hudson Yards.
The Hudson Yards development – which totals 12 million square feet of commercial, residential, and retail space – is slated to break ground in June. Other future tenants at Hudson Yards include Wells Fargo, BlackRock, and KKR.
Deloitte’s current New York hub is at Manhattan’s Rockefeller Center.
The new 70 Hudson Yards office will feature a large event space, a podcast studio, “red eye” suites where consultants can freshen up at after flights, and an 8,000-square-foot terrace.
The WSJ says that office vacancy rates are falling in Manhattan several years after Covid-19 pandemic hollowed out the market. Meanwhile, new office construction is practically non-existent, so top law firms, banks, and tech firms are scrambling after a scarce supply of shiny new towers with the latest amenities.
Nevertheless, the office downturn isn’t over. Vacancy rates remain near record levels in many cities (especially for older buildings) and the office recovery could yet be threatened by a tariff-induced recession.
