NYC EDC President and CEO James Patchett. Photo by Buck Ennis, Crain's New York Business

NEW YORK CITY—New York City Economic Development Corp. President and CEO James Patchett says that as part of Mayor Bill de Blasio's soon to be released “100,000 jobs plan,” city agencies will anchor new commercial developments in areas such as East New York, Long Island City, Harlem and Flushing.

Patchett, in a speech at the Crain's Business Breakfast Forum on Wednesday, revealed that as part of the initiative the city's Human Resources Administration would serve as a first such anchor, leasing a total of 250,000 square feet in one or multiple new developments in the East New York section of Brooklyn. Patchett, who took on his post at NYCEDC in February, said the relocation will not only provide a spark for the new development, but would also free up office space currently occupied by HRA in higher demand areas of the city.

The new city policy involves city agencies serving as anchor tenants for new commercial developments in targeted neighborhoods that have demand for more office space, but have a hard time attracting the type of larger tenant necessary to anchor a new building. The office anchor strategy is also intended to help the city plan for future space and tenanting needs in a cost-effective manner.

In addition to neighborhoods with what the NYCEDC terms as “untapped commercial potential, such as East New York, Patchett also mentioned other possible agency relocation destinations, including: Downtown Brooklyn and Long Island City where commercial growth has been priced out by residential development. He also cited Harlem, Flushing, and Jamaica as other possible agency targets.

“Right now, we see growing demand for office space outside the city's central business district,” said Patchett. “Local entrepreneurs want to stay in their current neighborhoods close to where they and their employees live, but there are limited options for new or quality workspace. That's where we come in.”

He added that New York City government has a leased portfolio of more than 22 million square feet, much of it in high-cost and high-demand neighborhoods. “So the City of New York is committing to use agency moves to anchor multiple new commercial developments over the next decade,” he said. “This strategy has the potential to create millions of additional square feet for growing businesses, which will provide space for thousands of new jobs.”

Deputy Mayor for Housing and Economic Development Alicia Glen added, “When we can serve New Yorkers and spur strong commercial development at the same time, that's a win-win, We are looking for smart ways to use our footprint to generate the new commercial space ‎that companies need to create good, middle class jobs.”

NYCEDC will be releasing a detailed Request for Proposals for an East New York development later this summer and the agency stated that it will be working in the months ahead to identify additional agencies with interest in relocating their operations to other parts of the city.

Patchett in his speech at the New York Athletic Club, noted that a key strength of New York City that has been a drawing card for business is its diversity. However, high costs of living and doing business has caused neighborhood gentrification.

He also noted that in addition to the new agency relocation initiative, the de Blasio administration will also combat the displacement that comes from neighborhood gentrification by developing more affordable housing as well as spurring new commercial development.

As part of his 2017 State of the City address in February, Mayor de Blasio committed to creating 100,000 middle class jobs through direct city investments over the next decade. The mayor has charged NYCEDC with formulating a plan to reach that goal and Patchett said the agency relocation program was part of the plan that will be rolled out in the near future.

New York

Instant Insights /

New Policy Has HRA to Lease 250,000 SF in East New York

Related Stories

Recommended For You