Related signs Deloitte to massive Hudson Yards lease

In a major coup for one of New York’s largest office landlords, Related Companies snagged a landmark tenant to take a majority of the space in a property yet to even break ground.

Accounting and consulting firm Deloitte agreed to lease 800,000 square feet at 70 Hudson Yards, the Wall Street Journal reported. The space, which includes an 8,000-square-foot terrace, will serve as North American headquarters for the company.

Terms of the lease were not disclosed. It will also be awhile before Deloitte can move in, as the groundbreaking for the development is slated for June. It’s unclear if Deloitte will leave Rockefeller Center, its primary office space in the city.

The 60-story, 1.1-million-square-foot property at 70 Hudson Yards is the largest ground-up office development in the country since the start of the pandemic. It will include a large event space, private dining, a media-podcast studio and “red eye” suites for use after flights.

Deloitte’s big lease reflects office tenants’ desire to occupy high-quality spaces as major companies demand workers return to workspaces years after the pandemic’s onset. Landlords of Class A office buildings are able to command top rents, while those with less-prestigious buildings have struggled to fill vacancies.

Manhattan is coming off its strongest quarter for office leases since the end of 2019, according to Savills. Office leasing volume hit 12.2 million square feet in the first quarter.

Work-in-office rates, meanwhile, reached 76 percent of pre-pandemic levels; one in four employers were planning to further increase office attendance at the start of the month, according to The Partnership for New York City.

The largest lease of the first quarter was secured by Brookfield at 250 Vesey Street. The lease was a 400,000-square-foot expansion by Jane Street Capital; Deloitte’s deal is double the size.

— Holden Walter-Warner