Imagine the iconic US Open being played in the heart of Manhattan, against the backdrop of Madison Square Garden. This could soon be a reality as Vornado Realty Trust explores unconventional uses for a site initially earmarked for a new skyscraper. The real estate company is scrambling to reinvent amid what its CEO, Steven Roth, dubs as an “office apocalypse.”
Vornado Reimagines Skyscraper Site
In a surprising turn of events, Vornado Realty Trust is considering transforming the space where a 61-floor office tower was to rise, into a tennis court for the US Open. This space could also potentially host basketball courts, the New York Fashion Week, or even sport a gigantic billboard measuring 150 feet by 197 feet, as per an online promotional brochure.
The skyscraper was slated to replace the Hotel Pennsylvania, which was shut down during the pandemic and subsequently demolished. However, as the pandemic drove a shift towards remote work and spiked interest rates, Vornado had to put a pin in its plans for the skyscraper and parts of its grand redevelopment project for Penn Station.
Conceptual Renderings Spark Interest
The renderings present in the brochure are merely conceptual, as clarified by a Vornado spokesperson. “We are currently considering a number of potential interim options for the Hotel Pennsylvania site,” the spokesperson commented. The site, known as PENN 15, is now fully flattened, as per the CEO’s statement during an earnings call.
It seems the pandemic has led to a “total blacklisting of office in the capital markets,” as Roth puts it, resulting in an “office apocalypse” in the central business district. If Vornado’s new plans align with the existing permits known as a general project plan, they could be fast-tracked, states Casey Berkovitz, press secretary at the Department of City Planning.
Multi-Use Space: A New Trend?
The flattened site offers a “diverse range of scenarios for brand activations and events,” the brochure suggests. This could mean anything from “basketball activation with NCAA-sized courts, a tennis brand, a large covered tent setup, or an outdoor concert venue.”
This potential pivot from skyscraper to multi-use space might be a sign of changing trends in the real estate market. With the pandemic driving a shift towards remote work, office spaces in city centers might continue to lose their appeal. As real estate firms like Vornado scramble for solutions, multi-use spaces might just be the future we’re heading towards.
For more insights on the changing trends in real estate, check out this article on Business Insider.
As we navigate this era of change and uncertainty, it’ll certainly be interesting to see how real estate giants like Vornado adapt and innovate. After all, necessity is the mother of invention.
