In a major move to address the housing shortage in Manhattan, Mayor Eric Adams and Governor Kathy Hochul have announced plans to transform the cavernous office spaces of 5 Times Square into residential units, breathing new life into the area. According to an official release by the NYC Mayor's Office, the Empire State Development Board of Directors gave the green light for converting the underutilized building, formerly occupied by Ernst & Young, into up to 1,250 homes, with 313 earmarked as affordable units for earners up to 80 percent of the area median income.
According to the NYC Mayor's Office, this project taps into recent legislative amendments, such as the elimination of the 12 "floor-to-area ratio" (FAR) residential cap, spearheaded by Mayor Adams and enacted by Governor Hochul and the New York Legislature. The removal of this cap previously restrained housing densities in the city, and together with the 467-m tax incentive program aimed at encouraging office-to-residential conversions, the stage is set for significant urban redevelopment. As stated by Mayor Adams, "Confronting a decades-long housing crisis requires creating new housing in every neighborhood at an accelerated pace — even here at the ‘Crossroad of the World’ in Times Square."
With construction anticipated to start by the end of 2025 and an expected completion date for the first phase in 2027, the project is forecasted to not only address the pressing need for housing but also to generate around 1,400 construction jobs and over 800 permanent ones. Moreover, the redevelopment at 5 Times Square is poised to contribute to the city's vibrant character by maintaining 37,311 square feet of retail space at the street level while turning a significant part of its 917,745 square feet of office space into a mixture of studios and one-bedroom apartments. "By converting underutilized office space into over a thousand new homes, including hundreds of affordable units, we’re reimagining central business districts as vibrant, mixed-use communities that foster both residential life and economic opportunity," Deputy Mayor for Housing, Economic Development, and Workforce Adolfo Carrión, Jr. told the NYC Mayor's Office.
The mayoral administration emphasizes the convenience of 5 Times Square's location, accessible to 12 subway lines and regional transit options, aligning with commitments to transit-oriented development. This urban transformation also resonates with "New" New York Action Plan, an initiative introduced by Mayor Adams and Governor Hochul to rethink the cityscape. Notably, this project is one in a series of Mayor Adams' efforts to inject more housing into the city, aiming to add 100,000 new homes to Manhattan within a decade, as detailed in his "Manhattan Plan".
As New York City pivots from underused office buildings to mixed-income residential blocks, the announced 5 Times Square conversion serves as a testament to a broader strategy to revamp the city's core districts. The innovative measures taken by Mayor Adams and Governor Hochul suggest a shift towards a more diverse cityscape, where thriving communities can potentially sprout from the remodeled office buildings that currently dot the city's skyline.
