After months of rumors, Facebook is officially committed to a sprawling lease across three buildings at Hudson Yards. Its decision to move thousands of workers there — the biggest lease in Manhattan in 2019 — marks a turning point for both the Far West Side megaproject and New York City’s emergence as a major technology hub.
All told, the social networking giant is taking in excess of 1.5M SF across 30 floors at Related and Oxford Properties Group's $25B project, the companies announced Thursday. Facebook will occupy about 1.2M SF at 50 Hudson Yards, some 265K SF at 30 Hudson Yards and approximately 57K SF at 55 Hudson Yards, where it will begin moving employees next year.
The entire office portion of the development is now 91% leased, Related and Oxford said in the release.
“It’s definitely a game-changer,” Savills Vice Chairman Jeffrey Peck said of the deal. “We have been seeing a seismic shift west and south, and this deal certainly establishes the Hudson Yards submarket as desirable for large tech companies. The smaller tech companies will, of course, follow suit.”
This lease is one of the biggest real estate transactions in Facebook’s history, a spokesperson for the company told Bisnow. It is not yet clear which of Facebook’s teams will be at the Hudson Yards offices. Facebook already has space at 770 Broadway, 225 Park Ave. South and 335 Madison Ave. and plans to continue to occupy those buildings.
“New York’s vibrant communities, strong business economy and diverse talent base first attracted us to the city in 2007,” Facebook Vice President of Global Facilities and Real Estate John Tenanes said in a statement. “When considering the next phase of our growth in the city, it was important that our newest office space was situated in the heart of a vibrant community that offered access to arts, culture, media and commerce. Hudson Yards offered this and more, and we’re excited to expand our offices there starting in 2020.”