The New York City Housing Authority is reducing its footprint as part of a drive to be more efficient with spending cuts on the horizon.
NYCHA is moving out of its 359K SF of offices at 250 Broadway, where it has been a tenant since the 1960s. All employees there will be relocated by 2019 to the department's existing office at the U.S. Postal Service-owned 90 Church St., bringing its total office footprint down from 1.35M SF to just over 1M SF. NYCHA said it is not laying off any employees to correspond with the move, The Real Deal reports.
Cushman & Wakefield advised NYCHA on the move, which corresponds with a new lease at 90 Church St. It estimates it will save $13M per year from 2020 to 2024, and $26M per year from then until the end of the Church Street lease in 2039. NYCHA also renewed its lease at 23-02 49th Ave. in Long Island City, owned by Westbrook Partners and Andrew Chung, to run until 2040.
In another revenue-mitigating move, NYCHA is planning to sell an industrial lot at 23 Ash St. in Greenpoint, where a single-story warehouse currently stands on 112K of buildable SF. With the Department of Housing and Urban Development planning on cutting NYCHA's budget by $75M, the city agency is looking hard at any way to offset such a loss.
