Mayor Adams, Hochul unveil $500m UN Plaza redevelopment, creating 1,800 jobs

File Source: Commercial Observer

New York City Mayor Eric Adams, Governor Kathy Hochul, and the United Nations Development Corporation (UNDC) have announced a $500 million redevelopment plan for One and Two United Nations Plaza, a project set to create over 1,800 jobs and generate billions for the city’s economy. The UN has committed to long-term leases at UN Plaza, reinforcing New York City’s status as a global hub while revitalizing commercial office space.

“Having the United Nations headquartered in New York City is a powerful, symbolic reminder of our city’s proud reputation as a global capital along with being an economic engine and job creator,” said Mayor Adams. “As we kick off ‘Jobs Week,’ we’re proud to partner with the state for this groundbreaking development plan for the UN Plaza that will create 1,800 jobs in the process, re-energize our commercial office space, and generate billions in economic impact for our city.”

Governor Hochul echoed the sentiment, emphasizing the project’s economic significance. “This $500 million investment by the United Nations Development Corporation is more proof that New York’s resurgence is in full swing. Projects like this create good-paying jobs, drive economic growth, and reinforce our position as the global capital of commerce and diplomacy.”

The project will include extensive renovations across 900,000 square feet of office space, incorporating energy-efficient systems under New York state’s BuildSmart 2025 program. The redevelopment will modernize the buildings to meet updated fire safety and accessibility codes. Construction, managed by Turner Construction Company, will begin in the second quarter of 2025 and is expected to be completed within four years. UNDC plans to issue up to $380 million in bonds to fund the project, with Goldman Sachs and Siebert Williams Shank serving as underwriters.

The UN Plaza buildings, originally designed in the 1970s and 1980s by Pritzker Prize-winning architect Kevin Roche, have long served the needs of the UN and its agencies. The upcoming renovations will allow for the consolidation of UN personnel, enhancing operational efficiency. UNICEF, which currently occupies Three UN Plaza, will take full ownership of its building in 2026.

The redevelopment aligns with Mayor Adams’ broader job creation initiatives. His administration has spearheaded workforce development programs such as “Jobs NYC,” which has connected 8,500 New Yorkers to employment and training opportunities. The city has also launched major economic projects, including the Kingsbridge Armory redevelopment in the Bronx, the Brooklyn Army Terminal expansion, and the Willets Point transformation in Queens—efforts expected to generate tens of thousands of jobs and over $100 billion in long-term economic impact.

U.S. Representative Gregory W. Meeks praised the UN Plaza redevelopment as a testament to New York’s resilience. “This historic investment strengthens New York City’s position as a global leader, committed to supporting both local and global economies. This project will create nearly 2,000 jobs for hard-working New Yorkers.”

New York City Councilmember Keith Powers highlighted the project’s diplomatic and economic significance. “New York is proud to be home to the United Nations, the center of diplomacy and peacemaking for the world. Today’s announcement shows a commitment to those values while creating 1,800 jobs and ensuring that this crucial commercial area remains a thriving center of public space for New Yorkers.”

Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York, emphasized the impact on working families. “The redevelopment of United Nations Plaza will be a key part of revitalizing Manhattan, creating thousands of good-paying union jobs and economic stimulus that will support our communities. We applaud Governor Hochul, Mayor Adams, and UNDC for pushing this initiative forward.”

With its strong commitment to workforce expansion and economic revitalization, the Adams administration continues to drive New York City’s resurgence, ensuring it remains the world’s leading center for diplomacy, commerce, and innovation.