Why Law Firms Are Moving to Hudson Yards and Midtown
Law firms in New York City are shifting from traditional Midtown addresses to newly minted Class A buildings in Hudson Yards and Midtown West. High-profile firms like Cravath, Cooley, Debevoise, and Milbank have recently signed long‑term leases in modern towers, drawn by state‑of‑the‑art amenities, sustainability, branding potential, and access to talent. In a tightening office market, these moves reflect a broader trend among financial, tech, and legal firms seeking to future‑proof operations.
📈 Office Market Dynamics: Why the Shift?
Midtown vacancy hit historic highs (~23%) in early 2024, prompting elite firms to seek fresh alternatives Financial Times.
Demand for high-end space remains strong. Manhattan Class A vacancy was near 10% even as downtown and older buildings remained more problematic Business Insider.
New leasing volume surged: 5.13 million ft² leased in Jan–Feb 2025 (+49% YoY) New York Post.
Manhattan Q1 2025 leasing totaled 7.9 M ft², well above the five‑year average wsj.com
🚀 Why Law Firms Are Choosing Hudson Yards
Cravath LLP moved from Midtown to Two Manhattan West in Hudson Yards in 2024, leaving a 35‑year Midtown base due to the appeal of new infrastructure, mentorship-driven design, and proximity to peer firms such as KKR, EY, and Amazon Financial Times.
About 90% of Hudson Yards office space was leased by early 2024, with 55 Hudson Yards housing Boies Schiller, Cooley, and Milbank. Zillow–market synergy and discretionary tax credits made leases attractive Financial Times.
Deloitte committed to lease 800,000 ft² at 70 Hudson Yards, making it the largest post‑pandemic office commitment even before construction began in June 2025 wsj.com.
📊 Rent Ranges & Vacancy Trends: Plain‑Text Charts
Annual Asking Rents – Midtown & Hudson Yards (2025)
Submarket | Asking Rent ($/ft²/year)
-------------------------------------|---------------------------
Hudson Yards (new towers) | $180 – $220+
Midtown Park Avenue / Sixth Avenue | $160 – $210
Midtown West (e.g. Manhattan West) | $150 – $180
Midtown South / Penn Station area | $140 – $170
Midtown (Class B older stock) | $90 – $130
Downtown (FiDi, Garment District) | $80 – $120
Vacancy Rates by Submarket (Q2–Q3 2025)
Submarket | Vacancy Rate (%)
-------------------------------------|------------------
Hudson Yards / Midtown Trophy | ~7 – 10%
Midtown Core (Park/Sixth Ave) | ~10 – 13%
Midtown South / CCS | ~15 – 18%
Downtown (FiDi, Garment District) | ~20 – 25%
Brooklyn (Post-COVID rebound) | ~23% (down from ~25%) – Brooklyn Office vacancy :contentReference[oaicite:16]{index=16}
🏗️ Pipeline Developments & New Inventory
Major new office developments offering premium workspace include:
70 Hudson Yards – Deloitte headquarter lease spans 800K ft²; tower starts construction mid‑2025 wsj.com.
One Vanderbilt, 270 Park Ave, 350 Park Ave (Citadel tower) and 2 World Trade Center – all reflect strong demand for newly built, flexible workspace Business Insider.
The Spiral (66 Hudson Boulevard) is fully delivered and offers 2.85M ft² of amenity-rich office space opened in 2023 en.wikipedia.org.
💼 Law Firms & Business Leaders Speak
“We’re transitioning into a modern environment designed to support mentorship, collaboration and recruitment. Hudson Yards provides that future-ready infrastructure.”
— Cravath partner David Perkins on firm’s move to Two Manhattan West (April 2024) Financial Times
“The Deloitte lease proves demand for prime office space isn’t slowing—it’s accelerating even before buildings are completed.”
— Commercial real estate analysts, Commenting on 70 Hudson Yards deal (April 2025) wsj.com
🌍 NYC vs Other Gateway Cities
City | Prime Rent ($/ft²/year) | Vacancy Rate (%) | Comments
----------------------|--------------------------|-------------------|---------------------------
New York (Hudson Yds) | $180 – $220+ | ~7 – 10 | Trophy towers, law & finance clustering
London (West End) | ~$130 – $160 | ~10 – 12 | Recovering post‑pandemic demand
San Francisco | ~$110 – $150 | ~15 – 18 | Tech firms returning
Chicago (West Loop) | ~$90 – $130 | ~16 – 20 | New developments attracting corporate tenants
Washington DC | ~$120 – $150 | ~12 – 14 | Government-driven and legal tenants
🎯 Why This Matters for Your Firm or Business
Law, finance, media, life sciences, healthcare, and consulting firms value amenities such as wellness centers, outdoor terraces, transit access, and best-in-class HVAC.
These buildings support recruitment and retention of younger talent who expect flexible, experiential workspaces.
Leases signed early, like Deloitte’s pre-construction deal, allow tenants to negotiate for custom design, branding, and fit-out allowances.
✅ How NYC Office Brokers Supports Your Move
We provide:
✅ Submarket-level rent and vacancy benchmarking
✅ Access to pre-market and unlisted office opportunities
✅ Tailored leasing strategy including buildout, branding, and negotiation support
✅ Tenant representation focused on securing efficient, flexible Class A workspace
🚀 Next Steps
If you're considering relocating or expanding your firm in NYC—even from Midtown to Hudson Yards—let’s talk. We’ll deliver a free market report covering neighborhood comps, availability, and upcoming supply, customized to your business sector.
Request a strategy consultation or office market audit here:
https://www.nycofficebrokers.com/contact