By Joseph Morales

Midtown Manhattan is arguably the commercial, cultural and recreational hub of both New York City and the World. Many prominent corporations have headquarters in Midtown such as JPMorgan Chase, Calvin Klein and Marvel to name a few. Midtown is also a hub for the entertainment industry, with Broadway Theatre and other performing arts venues attracting millions from around the world annually. Additionally, Midtown is known for a slew of other tourist attractions that attract millions of yearly visitors each such as St. Patrick’s Cathedral, Times Square, and Rockefeller Center. If that is any indicator, Midtown is well traversed by both locals and tourists alike.

                    While Midtown is the hub of many things, it is not the hub of government offices. The headquarters and offices of most government agencies in New York City tend to be concentrated in Lower Manhattan and Downtown Brooklyn. However, the MTA was once an exception, with their headqaurters on Madison Avenue between 44th and 45th Streets at 343 Madison Ave. Between 1998 and 2014, much of MTA operations were decentralized with many employees at their current Financial District headquarters, the Madison Avenue location, and another site at 370 Jay Street in Downtown Brooklyn. However, the latter two sites were closed due to financial difficulties and a desire for the MTA to consolidate office operations. Hence, workers at both buildings have since moved to the Financial District office at 2 Broadway just outside the Bowling Green(4,5) subway station. The Brooklyn site is now home to the NYU Center for Urban Science and Progress(CUSP).

                         As for the Madison Avenue HQ, this site has had a more tumultuous story since its closure. Upon closing the building, the MTA looked for a developer to redevelop the property and generate revenue for the often cash-strapped transit agency. In 2020, the MTA chose Boston Properties out of nine potential bidders in order to redevelop the site. Properties owned by the developer include the Times Square Tower where the main entrance to the Times Sq-42nd St station is located, Dock 72 in Brooklyn, and many other buildings in Midtown Manhattan. However following the deal, there was a dispute between the MTA and former NYC Mayor Bill de Blasio between how the money would be shared between the transit agency and the city in the form of property taxes. The mayor had touted the proposed redevelopment as made possible by his East Midtown Rezoning, which included provisions for taller buildings like the one that was eventually proposed for the site. Ultimately, the parties reached a compromise that involved $600 million in revenue being counted toward the city’s $2.66 billion contribution to the MTA’s 2015-19 Capital Plan. The redevelopment will now generate over $1 billion for both the city and MTA. 

                   After 7 years of being abandoned, the City Council finally approved plans for a 55-story office skyscraper that has since been scaled down to 49 stories. In addition to adding yet another building to the city’s iconic skyline, the building will include retail and underground connections to Grand Central Terminal. Despite the boom of hybrid work, workers are increasingly headed back into NYC offices. According to a study by The Partnership for New York City, 58% of Manhattan office workers were working in-person post-Labor Day 2023. That was up from 52% in late January and 49% in September 2022. As many prefer hybrid work due to commute times, 343 Madison Avenue will be a very desirable office location due to its direct connection to Grand Central Terminal, especially with the new Grand Central Madison being fully operational. Additionally, many workers will almost certainly be more inclined to work in a newer building with modern amenities than they would in one of East Midtown’s other buildings whose average age is more than 70 years old.  

                 In addition to adding offices, the new development is one of many projects that will help East Midtown stay competitive as a core business district. As other areas of Midtown grow and more jobs are located in the outer boroughs, having desirable facilities in East Midtown is imperative to bringing more business in the neighborhood. Many of East Midtown’s current buildings are less attractive to corporations due to flaws such as low floor to ceiling heights and a multitude of interior columns. Some office buildings with these issues were even converted to hotels pre-pandemic such as the Marriott Courtyard at 866 Third Avenue, the Library Hotel at 299 Madison Avenue, and the Condominiums at 5 E 44th St. This is why the city rezoned the neighborhood in 2017 to address these issues and usher in new development that would make companies continue to want East Midtown space. The rezoning was also done to help take advantage of the opportunities created by projects such as Grand Central Madison and a possible extension of the Second Avenue Subway south of 72nd St in the future. The 343 Madison Ave project is just one of several that will contribute to the rezoning’s goal.

                    The new skyscraper is scheduled to be completed by 2026. Before construction can start, the demolition of the former MTA HQ that is nearing completion must be finished. The demolition, which has been ongoing since 2022, is likely not finished due to the complexity of demolishing such a large structure. When a structure is demolished, many steps must be taken to ensure the safety of the surrounding community and that hazardous materials such as asbestos are not leaked into the air. The hazards associated with asbestos are part of why many people who lived or worked near Ground Zero following the 9/11 attacks contracted asbestos-related cancers. Due to environmental concerns and surrounding buildings, the building cannot just simply be imploded. Even the use of a wrecking ball would likely be unfeasible due its tendency to swing past its intended targets, which could spell disaster in a place as dense as Midtown. In fact, wrecking balls and implosion are not permitted anywhere in NYC likely for these reasons.

                 As demolition continues, it is unclear if construction on the skyscraper will be delayed as the average skyscraper takes about 2-10 years to build. On top of that, New York builds skyscrapers at a significantly lower rate than other U.S cities. This may make some New Yorkers skeptical of the 2026 completion timeline. The MTA has $15M in its 2020-24 Capital Plan earmarked for added costs connected to the demolition and sale of 343 Madison Ave. This initiative is scheduled to end in June 2025 and it is not clear what specific costs the agency is referring to. However, the “sale” might refer to Boston Properties selling a 45% stake in the property to an undisclosed investor though its still unclear what role the MTA had or world have had in the sale.

                  While the construction status of the building may be uncertain, the future for 343 Madison Avenue is definitely bright. As we are just a few years past wondering if workers would ever enter offices again, projects like office buildings remain prevalent in our society. It is also part of NYC’s tremendous economic comeback which has seen private sector employment exceed pre-pandemic levels. As sitework continues, this project will undoubtedly set the table for tremendous growth in East Midtown on the land previously occupied by the agency that keeps New York City moving.

Works Cited

“All You Need To Know About Visiting The Rockefeller Center.” Headout, 11 May 2023, https://www.headout.com/blog/rockefeller-center-new-york/. Accessed 4 February 2024.

“Seven Key Questions Clients Want to Know About Demolition.” R. Baker & Son, https://www.rbaker.com/press-room.php?id=179. Accessed 5 February 2024.

“Billboards in NYC Times Square | Billboards, Out Of Home, & Outdoor Media.” The Ad Focus, https://theadfocus.com/news/billboards-in-nyc-times-square/. Accessed 4 February 2024.

Boston Properties. “New York.” BXP, https://www.bxp.com/regions/new-york. Accessed 4 February 2024.

“Busy subways? More workers returning to the office in New York City, study finds.” ABC7 New York, 26 September 2023, https://abc7ny.com/return-to-office-back-work-remote-new-york-city/13830092/. Accessed 4 February 2024.

“Commercial Demolition FAQ.” Horst Excavating, 6 January 2022, https://www.horstexcavating.com/news-and-blog/all-you-need-to-know-about-commercial-demolition/. Accessed 4 February 2024.

Dearie, John P. “VCF Compensation for 9/11 Pancreatic Cancer – 9/11 Victim Compensation Fund.” 9/11 Victim Compensation Fund Attorneys, 1 August 2023, https://wtc911lawyer.com/blog/blog/cancer-claims/vcf-compensation-for-9-11-pancreatic-cancer/. Accessed 4 February 2024.

Fakhir, Dawood. “Boston Properties wins bid to redevelop MTA’s former HQ site in NYC.” S&P Global, 3 April 2020, https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/boston-properties-wins-bid-to-redevelop-mta-s-former-hq-site-in-nyc-57898579. Accessed 4 February 2024.

Garber, Nick. “Midtown Skyscraper At Former MTA HQ Approved By City Council.” Patch, 24 November 2021, https://patch.com/new-york/midtown-nyc/midtown-skyscraper-former-mta-hq-approved-city-council. Accessed 4 February 2024.

Hall, Miriam. “BXP Sells 45% Stake In Planned Madison Avenue Tower, Locks In Ground Lease With Escape Hatch.” Bisnow, 2 August 2023, https://www.bisnow.com/new-york/news/construction-development/boston-properties-forms-new-jv-for-planned-midtown-east-tower-locks-in-ground-lease-120059. Accessed 4 February 2024.

“How Long Does Demolition Take? 5 Factors.” Indianapolis Hauling Service | W R Beach, Inc., 28 July 2020, https://www.wrbeach.com/howlongdoes-demolitiontake-5-factors. Accessed 4 February 2024.

IrishCentral Staff. “St. Patrick’s Cathedral in New York City – facts and history.” IrishCentral, 11 April 2023, https://www.irishcentral.com/roots/history/st-patricks-cathedral-new-york-city. Accessed 4 February 2024.

Metropolitan Transportation Authority. “MTA Capital Program Dashboard-Capital Plan 2020-24.” MTA, Q3 2023, http://web.mta.info/capitaldashboard/CPDPlan.html?PLN=8&AGY=a. Accessed 4 February 2024.

Neuhauser, Alan. “MTA’s Madison Avenue Headquarters to Make Way for Luxury Developments.” DnainfoNewYork, 27 June 2013, https://www.dnainfo.com/new-york/20130627/midtown/mtas-madison-avenue-headquarters-make-way-for-luxury-developments/. Accessed 4 February 2024.

New York City Department of City Planning. “East Midtown Rezoning – Department of City Planning.” NYC.gov, https://www.nyc.gov/assets/planning/download/pdf/plans/east-midtown/east_midtown.pdf. Accessed 4 February 2024.

NYU. “370 Jay Street.” MEET NYU, 17 June 2020, https://meet.nyu.edu/locations/370-jay-street/. Accessed 4 February 2024.

Potter, Brian. “Which City Builds Skyscrapers the Fastest?” Construction Physics, 24 March 2023, https://www.construction-physics.com/p/which-city-builds-skyscrapers-the. Accessed 4 February 2024.

“Research & Statistics Statistics – Broadway in NYC.” The Broadway League, https://www.broadwayleague.com/research/statistics-broadway-nyc/. Accessed 4 February 2024.

Serrano, Eva. “CALVIN KLEIN New York, NY Office.” Glassdoor, 16 June 2023, https://www.glassdoor.com/Location/CALVIN-KLEIN-New-York-Location-EI_IE4408.0,12_IL.13,21_IC1132348.htm. Accessed 4 February 2024.

“Signs of Progress: NYC’s Economic Recovery.” Partnership for New York City, November 2023, https://pfnyc.org/research/signs-of-progress/. Accessed 4 February 2024.

Young, Michael. “Demolition Wraps Up for KPF-Designed Office Skyscraper at 343 Madison Avenue in Midtown East, Manhattan.” New York YIMBY, 13 March 2023, https://newyorkyimby.com/2023/03/demolition-wraps-up-for-kpf-designed-office-skyscraper-at-343-madison-avenue-in-midtown-east-manhattan.html. Accessed 4 February 2024.