36.6 C
Washington

The NYC ‘office apocalypse’ has a developer mulling tennis courts where it had planned a 61-floor skyscraper

Date:

Share:



Vornado Realty Trust is considering tennis courts for the US Open as a temporary replacement for a skyscraper near Madison Square Garden, as the real estate developer copes with what its chief executive called an “office apocalypse.”

The area where the 61-floor office tower in Manhattan was planned could also become the site of basketball courts, New York Fashion Week or even a giant billboard that’s 150 feet (46 meters) tall by 197 feet wide, according to an online promotional brochure.

The new office tower was set to replace Hotel Pennsylvania, which was shut during the pandemic and demolished. But Vornado put the tower plan on hold along with parts of the massive redevelopment plan to remake Penn Station last year after high interest rates and the shift to working from home triggered a crisis in the commercial real estate market.

Read More: Billionaire Steven Roth’s Manhattan Bet Battered by Office Woes

A Vornado spokesperson said the renderings in the presentation were for “conceptual purposes.”

“We are currently considering a number of potential interim options for the Hotel Pennsylvania site,” the spokesperson said.

Crain’s New York previously reported on the brochure.

There’s a “total blacklisting of office in the capital markets,” Chief Executive Officer Steven Roth said on an earnings call earlier this week, leading to an “office apocalypse” in the central business district. He said the site where the tower was planned, known as PENN 15, is now fully flattened.

If Vornado’s new plans are in line with existing permits known as a general project plan, they could move quickly, said Casey Berkovitz, press secretary at the Department of City Planning. “It makes sense that in the short term they’d want to do something to the space,” he said.

The brochure states that the flattened space offers a “diverse range of scenarios for brand activations and events,” including “basketball activation with NCAA-sized courts, a tennis brand, a large covered tent setup or an outdoor concert venue.

— With assistance from Katherine Chiglinsky

    Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up for free.



    Source link

    Subscribe to our magazine

    ━ more like this

    Junk bonds are now in high demand as Wall Street bets on another Trump presidency

    The credit world’s version of the “Trump trade” is beginning to take shape: Buy American high-yield bonds and steer clear of anything inflation-sensitive. Corporate...

    The worst IT catastrophe ever hit less than 1% of all Microsoft Windows devices

    A faulty software update from cybersecurity firm CrowdStrike Holdings Inc. affected 8.5 million devices globally that rely on the Microsoft Windows operating system. Microsoft...

    Phishing attempts rise as scam artists try to exploit the CrowdStrike global tech outage

    As the world continues to recover from massive business and travel disruptions caused by a faulty software update from cybersecurity firm CrowdStrike, malicious...

    Gunman in Trump assassination attempt flew a drone over the rally site ahead of shooting, official says

    The gunman in the attempted assassination of former President Donald Trump is believed to have flown a drone around the Pennsylvania rally site ahead of...

    ‘Black Swan’ investor warns the ‘greatest bubble in human history’ is about to pop and stocks could lose more than half their value

    Mark Spitznagel, cofounder and chief investment officer of the hedge fund Universa Investments, has frequently sounded the alarm about bubbles popping and other...