NYC's commercial real estate crisis is so bad that a developer is considering turning a prime plot o
- Vornado Realty Trust is contemplating turning a prime New York City plot into a giant billboard.
- The plan comes amid a struggling commercial real estate market.
- The site, once home to Hotel Pennsylvania, has also been proposed for housing by state lawmakers.
New York City-based developer Vornado Realty Trust is considering using a plot of land near Madison Square Garden and the Empire State Building to house a 150-foot tall billboard, among other options.
The project is called "The Penn Platform" and was previously reserved for a 56-floor office tower. But the commercial real-estate sector is in serious trouble, and now, Vornado is rethinking that plan.
Vornado says the site could be used for a variety of functions. In addition to the massive billboard, that list includes sporting facilities such tennis courts and NCAA-sized basketball courts, or facilities for events such as New York Fashion Week, according to an online marketing brochure published by the developer. The news was first reported by Crains New York Business.
"We are currently considering a number of potential interim options for the Hotel Pennsylvania site," a Vornado spokesperson told Business Insider via email, referring to the famous hotel that previously stood on the plot of land. The Hotel Pennsylvania was built in 1919, closed in 2020, and demolished in 2023.
"The renderings in the presentation are for conceptual purposes," the spokesperson added.
Steven Roth, the CEO of Vornado, did not mince words when it comes to the current state of the commercial real estate market.
"We have a CBD office apocalypse involving the work from home threat and the total blacklisting of office in the capital markets," Roth said in an earnings call on February 13.
New York City's commercial real estate market is struggling in the face of continued high interest rates and remote work trends. And it's not just NYC. On a national scale, the commercial real estate market is a "slow moving train wreck," market expert Larry McDonald said in January.
New York state lawmakers have asked the site be used to build housing, according to Crain's New York.
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