Office Project Nixed
Commercial Observer
Connecting and informing industry leaders of trends and individuals defining the global commercial real estate landscape
A major office development planned for Downtown Los Angeles is no more — a stark reminder of what the sector still confronts in terms of vacancy and financing. Also for today: The commercial real estate industry is none too pleased with New York Gov. Kathy Hochul for delaying the start of congestion pricing in Manhattan’s central business district.
— Tom Acitelli, Deputy Editor
Tishman Speyer's 217K-SF Office Project in Downtown LA Fizzles
A sprawling office development plan on the edge of Downtown Los Angeles has officially bit the dust as the office market continues to struggle. The L.A. Department of City Planning late last month ended entitlement proceedings for the proposed project at 2159 East Bay Street, in L.A.’s Arts District, which would have featured 217,189 square feet of office space and 5,000 square feet of retail space. Urbanize first reported the news. New York-based Tishman Speyer submitted plans for the 1.7-acre site in 2017. The developer planned to demolish four warehouses at the property that previously served as the former headquarters of Elon Musk’s Hyperloop One, a high-speed transportation concept for passengers and freight.
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Real Estate Joins Chorus of Criticism Toward Hochul’s Congestion Pricing Pause
Gov. Kathy Hochul is jumping over dollars to pick up dimes it seems with the recent decision to shelve New York’s almost decade-in-the-making congestion pricing program. While New Yorkers have dreamed of a congestion toll for Manhattan since at least Mayor Michael Bloomberg’s administration, the iteration that Hochul paused at the zero-hour on Wednesday had been in the works since the great transit meltdown of 2017 and had at least $550 million already invested. With the tolling cameras above entry points to Manhattan below 60th Street now peering over the streets with lifeless eyes, real estate industry leaders may be refraining from the advocates hurling terms like “coward” and “betrayal” at the governor, but the pause is far from what they wanted.
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