Johnson Consulting - Real Estate Consulting

Project Highlights

  • Summarized the proposed $9 billion development, its phasing, and its development costs,
  • Analyzed the economic and fiscal impacts of the development
  • Analyzed job growth resulting from the development

 
C.H. Johnson Consulting was retained by Related Companies, LP (Related) to perform an economic and fiscal impact analysis of the proposed mixed-use development on a 26-acre site known as West Side Yard (WSY) in Manhattan, New York. The study was to support Related and Goldman, Sachs & Co. in their successful response to Request for Proposals issued by Metropolitan Transportation Authority, State of New York for development opportunity at the aforementioned site.

The WSY development site is in the Hudson Yards area, adjacent to the Javits Center. The entire area consists of approximately 45 square blocks in Manhattan generally bounded by Seventh and Eighth Avenues on the east, West 42nd and West 43rd Streets on the north, Eleventh and Twelfth Avenues on the west, and West 28th and West 30th Streets on the south. The proposed West Site Yard development area consists of two parts: Eastern Rail Yard (ERY) and Western Rail Yard (WRY). Combined, the proposed development included a series of skyscrapers and multi-story buildings built on a platform over the Long Island Rail Road Company (LIRR) rail yard. The WSY development would include approximately 1,900 rental apartment units, over 10,000 for-sale condominium units, 6.6 million square feet of leasable office space, 772,000 square feet of retail space, a 325-room luxury hotel, and parking garages for 900 cars, as well as public open space, for a total construction budget of over $9 billion.

In this engagement, C.H. Johnson Consulting quantified the net positive economic activity that will result from the development and measured the potential economic and fiscal impact of the Project. A key component of the analysis was estimating the number of jobs created from the development, including on-site employment and additional jobs impacted from spending activity over time, as well as the number of construction jobs during the multi-phased construction activity.