BARS, BARS 2021

The Related Companies: Hudson Yards, Phase 2

Author: Alexandre St-Cyr
Mentor: Dr. Katherine Conway
Institution: BMCC
Abstract: COVID-19 has impacted the U.S. economy, changing work habits, shopping patterns, and tourism. The resulting impact on residential and commercial real estate is not yet fully known. The largest private real estate development in American history, Hudson Yards, and the developer behind it, The Related Companies, face myriad obstacles. Phase 1 of the mixed-use development struggles to recover as Phase 2’s planned 2025 completion looks uncertain. At an estimated $25 billion development cost, Hudson Yards relies on tax breaks and government assistance for survival and completion. The Eastern Yard (Phase 1) opened in 2019, with a combination of office, retail, and residential space, only to encounter setbacks due to COVID-19. Questions remain about the viability of the Western Yard (Phase 2), which is largely composed of residential space. This research aims to foster a broader citizenry debate about development, how tax dollars are spent, and the benefits of public-private partnerships. I have aggregated information and data to provide a more complete analysis of the current situation, potential effects on those involved, and outcomes in the future. My presentation will examine: the history of Phase 1 and its funding; the current and planned developmental mix; the impact of COVID-19; the commercial and residential real estate outlook; and tourism and online shopping statistics. My analysis will explore the benefits and drawbacks of completing Hudson Yards from the perspective of The Related Companies, potential investors, New York City and its taxpayers.

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2 Comments

  1. Jim

    Fascinating topic. Thank you.

  2. Alexandre, Thank you for the analysis of Related and Hudson. I appreciated the several dimensions that you studied. Where might you distribute this research so that policymakers and other advocates may learn about this overview of the real estate development?