The Community Politics Behind NYC's Hudson Yards with Author Tom Fox

• Decoding Real Estate Podcast: The story behind Hudson Yards is one of quiet deals, public pressure, and the unexpected compromises that make major developments possible.

• Green light: SL Green is listing two prime Manhattan buildings as investor interest and office leasing rebound.

• Beantown bleed: Boston faces a $1.7B shortfall as office values plunge, tax revenue shrinks, and homeowners shoulder more of the burden.

• Ground game: Japan’s pension giant is increasing real estate bets, favoring logistics over offices amid interest rate risks.

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Decoding Real Estate Podcast

The Community Politics Behind NYC's Hudson Yards with Author Tom Fox

Hudson Yards is one of the most ambitious real estate developments in American history—but behind its shimmering towers lies a story of political maneuvering, public-private compromise, and community resistance. Few know just how much backroom negotiation it took to make the project a reality.

Tom Fox, longtime public servant and head of the Hudson River Park Conservancy, was at the center of those negotiations. In his book—named one of Propmodo’s 50 Greatest Commercial Real Estate Books—he shares the lessons learned from years of working with developers, city officials, and activists to shape the future of Manhattan’s waterfront.

On Propmodo’s Decoding Real Estate podcast, Fox opens up about what went right, what went wrong, and why the second phase of Hudson Yards has him concerned. He also explains why the best outcomes often come when builders and advocates stop fighting and start listening.

Overheard

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Multifamily Security

SL Green Moves To Capitalize On Manhattan Office Market Momentum

SL Green Realty is testing investor appetite for prime Manhattan real estate with the listing of two high-profile properties: 110 Greene Street in SoHo and 690 Madison Avenue near Central Park. Brokerage Eastdil Secured is marketing the buildings, which are expected to fetch a combined $300 million, according to sources familiar with the offering.

110 Greene, a 13-story, 295,000-square-foot office building anchored by Avoro Capital, is situated between Prince and Spring Streets in SoHo. SL Green, Manhattan’s largest office landlord, gained control of 690 Madison through foreclosure in 2021 and later sold a stake to retail magnate Jeff Sutton. The property is currently home to Van Cleef & Arpels.

The Manhattan office market is showing signs of renewed life. Leasing volume surged 59% year-over-year in the first quarter, per CBRE, and investors are returning to the table. Amazon recently acquired a Fifth Avenue tower, while RXR is closing in on a $1.1 billion deal for 590 Madison Ave.

Office Vacancies Threaten Boston’s Budget With Steep Tax Shortfalls

A new report warns that Boston is facing a looming $1.7 billion budget shortfall over the next five years, which is worse than previously projected, as plunging office property values and persistent vacancies erode the city’s commercial tax base. The Boston Policy Institute and Tufts University’s Center for State Policy Analysis cite a steeper-than-expected 35–45% decline in office values, driven by remote work and a lack of decisive city action, pushing the city toward potential revenue losses exceeding $2 billion in a worst-case scenario.

With property taxes accounting for about 75% of Boston’s revenue, the shrinking commercial base is shifting more of the burden onto homeowners, who have already seen double-digit increases. The report urges the city to reconsider constant tax hikes and instead explore spending cuts and alternative revenue strategies. Analysts warn that failing to address the root causes, like revitalizing downtown and curbing office vacancies, could further depress both commercial and residential values.

Pension Funds Are Warming Back Up to Commercial Real Estate

After years of pension funds divesting from commercial real estate assets, the trend might be reversing. The world's largest pension fund, Japan's Government Pension Investment Fund, has announced that it will be increasing exposure to commercial real estate. The fund has grown its real estate exposure by 27% in 2023. Right now the company has only 25% of its real estate portfolio in office and 45% in logistics. "We have little exposure to traditional offices, which helped minimize portfolio impact during the pandemic," the fund's managing director of private market investment, Yoshitaka Todoroki, said.

The move is a way for GPIF to meet its target return, which it just increased from 1.7 to 1.9%. Much of their real estate is managed by commercial real estate specific companies like CBRE and JLL. They have also invested in large real estate portfolios owned by Blackstone and Brookfield.

Japan's real estate market has been strong compared to other markets, which could account for the cheery outlook of the pension fund. However, the market also carries risks that other markets don't. Unlike the rest of the world, Japan has kept its interest rates low. Currently, the rate set by the Bank of Japan is around 0.05%. If rates end up getting pushed higher, it could result in cap rate expansion that would lower the value of the country's real estate.

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