Facebook in Talks for Offices at Hudson Yards
26 Junho 2019 - 6:57PM
Dow Jones News
By Keiko Morris
Social media giant Facebook Inc. is in talks to lease 1 million
square feet of office space in a skyscraper under construction in
Manhattan's newest neighborhood on the far West Side, according to
a person familiar with the discussions.
The deal would create one of Facebook's largest office
operations in the world outside of its headquarters in Menlo Park,
Calif. If the lease is finalized, it would be a sign that New York
continues to hold allure for big tech firms following Amazon.com
Inc.'s about-face earlier this year.
Amazon canceled its plans for to build a $2.5 billion campus in
the Long Island City neighborhood in Queens because of political
opposition against state and city subsidies. It isn't clear whether
New York is offering Facebook any subsidies in the deal under
discussion.
The Facebook lease would mark yet another leasing milestone for
Hudson Yards, the 18-million-square-foot project being developed
over a rail yard in a venture of Related Cos. and Oxford
Properties. Facebook is eyeing a 2.9-million-square-foot tower, 50
Hudson Yards, that already has cut a deal with money manager
BlackRock Inc. for its global headquarters.
Other big names have made deals for Hudson Yards office space
such as WarnerMedia, private equity firm KKR & Co. Related and
Oxford officially opened the $25 billion development in March,
debuting high-end shops and restaurants at its glitzy mall.
A possible Facebook lease at 50 Hudson Yards would enable the
firm to consolidate operations from several of its current New York
locations. Facebook has had sales and marketing employees in New
York since 2008 and started hiring engineers in 2012.
Facebook's negotiations to consolidate in Hudson Yards were
reported earlier by Crain's New York Business.
In 2013, Facebook signed a 10-year lease for 100,000 square feet
at an office building near New York University. Today the firm has
680,000 square feet at that location, according to CoStar Inc.
Many New York officials and landlords worried Amazon's retreat
would have a chilling effect on other potential relocations and
expansions by tech companies in the city. But Facebook is just one
of several major firms looking for space in New York City.
Alphabet Inc.'s Google is nearing a deal to buy or lease a
planned 1.3 million-square-foot office building at St. John's
Terminal in the city's West Village neighborhood, The Wall Street
Journal previously reported. The tech firm has plans to add space
in the city for more than 12,000 new workers.
"There are so many tech-related firms that are expanding at a
ferocious pace," said David Falk, president of the New York
Tri-State region at real-estate services firm Newmark Knight Frank.
"This is the reason why the market has been really so hot."
Write to Keiko Morris at Keiko.Morris@wsj.com
(END) Dow Jones Newswires
June 26, 2019 17:42 ET (21:42 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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