Just hours from now, Related Companies will break ground on its new office tower in Hudson Yards, on Manhattan’s west side. The company is planning a 46-story, 1.7 million square foot tower which is expected to cost $1 billion, according to reports.
Luxury leather goods retailer, Coach, has agreed to purchase a total 750,000 square feet in the building. The company has an option to tack on an additional 100,00o square feet to its final tally, potentially giving it 850,000 square feet in the South Tower.
Related Companies founder and Miami Dolphins owner, Stephen M. Ross, will be on hand at the groundbreaking to celebrate the beginning of preliminary construction, as will CBRE CEO, Mary Ann Tighe, who is representing Coach as it seeks to close on its deal with the developer. Ms. Tighe said Monday that she fully expects other company’s to lease substantial space in the building in the future.
Coach will turn its new offices into its corporate headquarters, while also consolidating three New York City offices into the South Tower, sometime by 2015.
The development is part of a trend of prosperity for the west side of midtown, which has increased its presence in the commercial real estate market over the past 20 years. The market now boasts a vacancy rate below 10 percent across all assets.