Vornado Realty Trust is investing $1 billion in new office, retail, and residential development around New York City’s Penn Station, expecting more commuters to return as the COVID-19 pandemic recedes.
Vornado CEO Steven Roth believes that the number of daily commuters to Penn Station will eventually reach pre-pandemic levels of 600,000. The company is constructing projects to facilitate easier access to and from work.
One of the projects is a 1.3 million square feet office tower at 340 Madison Avenue, directly across from Penn Station, set to be completed in 2025.
Roth expressed confidence in the success of these projects. He attributed it to their prime location and amenities designed to attract commuters. In addition, Vornado has plans to enhance public spaces around Penn Station. This includes the improvement of the station’s plaza.
Vornado’s investment reflects optimism among some real-estate investors regarding the future of office space in New York City. The pandemic caused a decline in office occupancy. However, experts anticipate a reversal as more people return to work.
Moreover, Vornado’s investment indicates the ongoing attractiveness of the real-estate market surrounding Penn Station. The area houses major corporations like Goldman Sachs, Morgan Stanley, and Citigroup. It serves as a significant transportation hub, providing access to Amtrak, NJ Transit, and the Long Island Rail Road.
The outcome of Vornado’s bet on commuters returning to Penn Station remains uncertain. Nevertheless, the company’s investment signifies the confidence of certain real-estate investors in the area’s future.
