A massive office-to-housing conversion is scheduled to transform underused space in 5 Times Square into a mixed-use development, creating 1,250 new homes in NYC. Even better, 313 of them will be permanently affordable homes.
This is all possible following Governor Kathy Hochul’s enactment of the Affordable Housing from Commercial Conversions Tax Incentive program and her lift last year on the 12 Floor Area Ratio (FAR) cap on residential development in NYC. Such a law has limited new housing developments for over 60 years. As a result of it being lifted, NYC has already begun creating or completed around 10,000 new apartments in New York City since last April.
“We took bold action to unlock major office-to-housing conversions in New York City, and transforming 5 Times Square from underused offices into 1,250 new homes — including over 300 permanently affordable apartments — is a prime example of how we’re getting it done,” Governor Hochul said. “As I’ve made clear, the only way to address our housing crisis is to build more of the homes New Yorkers need — and I’ll never stop working to make that a reality.”
5 Times Square has had a 77% office vacancy rate. This conversion project will repurpose almost one million square feet of underutilized space, while setting aside more than 37,000 square feet for retail operations. Of the 1,250 new homes that will be created, 1,050 will be studios and 200 units will be one-bedrooms. All residents will have equal access to the building’s amenities.
In addition to all of the new apartments, the conversion project will generate 1,400 construction jobs and 830 both direct and indirect jobs. Construction will commence in Q3 of 2025. Phase one is projected to finish in 2027.
“Confronting a decades-long housing crisis requires creating new housing in every neighborhood at an accelerated pace — even here at the ‘Crossroad of the World’ in Times Square,” Mayor Eric Adams echoed. “The transformation of 5 Times Square from an underutilized office building into 1,250 new homes capitalizes on hard-fought Adams and Hochul administration victories while fulfilling my plan to build 100,000 new homes in Manhattan over the next decade.”