Study: Hudson Yards Will Add $18.9 Billion to the City’s GDP
According to a recent study, economic activity at the $20 billion Hudson Yards West Side development–the nation’s largest construction site–will contribute $18.9 billion to the city–more than the gross domestic product of Iceland ($15.3 billion), Crains reports. The study, commissioned by the project’s developer, Related Cos., predicts that the companies projected to occupy the massive project that will stretch between West 30th Street and West 34th Street along the Hudson River will generate economic activty in the form of, among other things, salaries for new jobs and money paid to the MTA by the developer both during the 14-year construction period and once the development is complete in 2025.
Hudson Yards Master Plan, Courtesy of Kohn Pederson Fox (KPF).
According to the study, “Three years into a 14-year construction program…the bet is beginning to pay off.” The project includes 10.4 million square feet of office space, eight residential buildings, retail and a cultural center.
The report estimated that 2,767 construction jobs would be created each year during the build-out period. Once complete, Hudson Yards is expected to employ 56,000 full-time employees earning $9.8 billion annually in total (an average of over $175,000 per worker). The Metropolitan Transportation Authority, which owns the rail yards above which most of Hudson Yards will be built, will receive a total of $1.8 billion in lease payments from Related during the build-out period, and payments of $89 million annually once the project is complete, in addition to $68 million annually as payments in lieu of taxes that the city will use to pay down its debt service for the No. 7 train extension which opened late last year.
Image courtesy of Visualhouse.
According to Crains, Related currently has commitments for 4 million of the available 10.4 million square feet of office space; the developer recently secured tenants Intersection and Sidewalk Labs, who have committed to the last big block of space in the project’s 52-story skyscraper for their corporate headquarters.
Check out the Hudson Yards Economic Impact report here.
[Via Crains]
Lead Image: Hudson Yards retail building, Courtesy of Related-Oxford.
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