Sitting on the West Side of Manhattan is the $25 billion neighborhood known as Hudson Yards. Not even a year ago, the area celebrated its grand opening. Anchored by its seven-story retail mall, as well as luxury condominiums, this is not the way the developers believed their first year would end.
Condo sales have slowed, and as expected, retail shops and restaurants have shut down due to the shelter-in-place.
What could be the biggest blow to Hudson Yards is the potential closing of Neiman Marcus, who is reportedly on the verge of filing for bankruptcy.
Hudson Yards was prepping for certain attractions to open for the beginning of spring, such as the Edge observatory deck and its glamorous 101st-floor restaurant, Peak. Both spots opened their doors, and we forced to shut them almost immediately.
Fortunately, developers Related Cos. have seen bright spots. They have three towers, 10, 30, and 55 Hudson Yards performing well. Tenants, including Time Warner, Wells Fargo & Co, and Coach are paying nearly 100% of the rent.
However, the group is hurting most through retail, as they are experiencing a “sharp drop” in rent collection.
“Rather than collecting a fixed rent, Related is paid a percentage of sales from Neiman Marcus and other luxury tenants at Hudson Yards, brokers said,” according to the Wall Street Journal.
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To read the full report in the Wall Street Journal, click here: https://www.wsj.com/articles/glittering-hudson-yards-is-dulled-by-coronavirus-pandemic-11588126005
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