HomeReal Estate NewsCommercialFacebook Targets a Million Square Feet at Hudson Yards

Facebook Targets a Million Square Feet at Hudson Yards

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Facebook is looking to lease 1 million square feet of office space in a currently under-construction skyscraper in Manhattan, according to people familiar with the situation, The Wall Street Journal reports. The social media giant’s office space would be in Manhattan’s newest neighborhood on the far West Side.

If the deal is successful, the office space would be one of the company’s largest operations in the world outside of its Menlo Park, CA headquarters, according to The Wall Street Journal. A finalized lease would indicate that New York is still attractive to big tech companies despite Amazon backing out of its deal to open an office there earlier this year. Amazon canceled its plans to build a $2.5 billion campus in Queens because of political opposition against state and city subsidies. Whether Facebook would receive subsidies hasn’t been discussed.

A Facebook lease would also be another milestone for the 18-milllion square foot Hudson Yards project. The company is looking at a 2.9 million square foot tower, 50 Hudson Yards, which already has an agreement with money manager BlockRock Inc. for its global headquarters.

WarnerMedia, private equity firm KKR & Co. have also made deals for Hudson Yards office space, while Related Companies and Oxford Properties opened the $25 billion development in March. If Facebook leased space at 50 Hudson Yards, the company could consolidate its operations from its numerous New York locations. The social media company has had sales and marketing employees in the Big Apple since 2008 and began to hire engineers in 2012.

Facebook currently has 680,000 square feet at an office building near New York University, according to CoStar, Inc. When Amazon decided not to open its campus in New York, government officials thought that might be the end of tech companies setting up operations in the city. However, Facebook is just one tech company looking for space in the New York City, according to The Wall Street Journal. Google is also close to a deal to purchase or lease a 1.3 million square building at St. John’s Terminal in New York City’s West Village neighborhood. Google also plans to add space in the city to accommodate more than 12,000 new employees, The Wall Street Journal reports.

“There are so many tech-related firms that are expanding at a ferocious pace,” David Falk, president of the New York Tri-State region at real-estate services firm Newmark Knight Frank told The Wall Street Journal. “This is the reason why the market has been really so hot.”

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