Tishman Speyer Seeks $100 Million Abatement for Hudson Yards Office
New York City’s Industrial Development Agency will vote September 15 on a $100 million property-tax abatement for Tishman Speyer’s proposed 48-story office tower at 99 Hudson Boulevard. Construction on the $2.7 billion, 1.3 million-square-foot building is scheduled to begin in January, with completion targeted for 2030. The subsidy would be the largest economic incentive approved since Mayor Zohran Mamdani took office. Tishman Speyer acquired the site, across from the Javits Convention Center, in 2016.
The IDA estimates the tax benefits will cost the city $92.2 million while generating $860 million in direct and indirect tax revenue. Tishman Speyer already developed The Spiral in Hudson Yards, a 66-story tower that houses Pfizer’s headquarters and tenants including HSBC, AllianceBernstein, and Marshall Wace. The developer argues the abatement is needed to transform a long-vacant lot into office space and create jobs. A public hearing on the application took place Thursday.
The proposed subsidy could place Mamdani at odds with his progressive base, which opposes tax breaks for wealthy developers. The mayor has previously stated that subsidies are not necessary to compete for business, and his economic agenda has focused on affordability initiatives including city-owned grocery stores. Mamdani has not commented on the application. Government watchdog groups argue Hudson Yards no longer needs incentives given the neighborhood’s success, pointing to some of the city’s highest office rents and blue-chip tenants including BlackRock, Wells Fargo, and KKR.
During the Bloomberg and de Blasio administrations, the IDA provided roughly $1 billion in tax breaks to Related Companies, Brookfield Properties, and Tishman Speyer for Hudson Yards projects. The neighborhood required government support after the 2008 recession forced the city to cover $360 million in interest payments on bonds backed by developer payments. Since 2018, the Hudson Yards Infrastructure Corporation has transferred about $2 billion in surplus revenue to the city after debt service. Steven Fulop of the Partnership for New York City said approving the abatement is critical to the city’s competitiveness and will unlock private investment.
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