Related Companies chief executive officer Jeff Blau is steadfast in his commitment to New York City, characterizing the metropolis as a heart of talent and business.
Speaking on the evolution of his firm and the broader market at the TRD Forum on Wednesday, Blau emphasized that despite Related’s expansion into sectors like data centers — not a New York-centric business — the company’s identity is inextricably linked to New York.
Reflecting on the 15-year journey of Hudson Yards, Blau noted the district has successfully become a premier commercial hub, boasting 100 percent occupancy. He dismissed concerns about the death of the office sector, asserting the office market is at an all-time peak and will continue to succeed as companies follow the talent pool that resides in the city.
Addressing the housing crisis, Blau expressed skepticism regarding the 485x program, stating the program’s economics do not support large-scale market-rate construction. He advocated for permit streamlining and regulatory reform, citing the high costs of specific mandates, such as bird-safe glass, as significant hurdles for affordable housing.
Blau pointed to the Elliott Houses redevelopment in Chelsea, one of the company’s most followed projects, as a potential “test model” for NYCHA, where private investment can modernize aging public housing while maintaining tenant protections.
Beyond Manhattan, Related is navigating a complex landscape. While the firm is actively building for Ken Griffin in Brickell, Blau described Florida as a “difficult state” for their specific operations.
The company is also pivoting toward infrastructure for the digital age, aggressively entering the data center market across several states. Blau acknowledged the potential for NIMBYism surrounding these projects but stressed the importance of community-friendly development, including localized benefits like affordable housing and municipal infrastructure.
The discussion was not without controversy. At several different junctures, protestors emerged from the audience to shout down Blau and Related for the company’s use of taxpayer dollars for luxury housing; one of the protesters was comedian and actor Walter Masterson.
The protest appeared related to a deal struck under the previous mayoral administration that would have New York City bankroll a roughly $2 billion platform over the West Side rail yard for development at Hudson Yards. Related’s retracted casino bid was designed to provide an economic engine for the construction of that platform, according to Blau.
When that didn’t pan out, Eric Adams agreed to a $2 billion tax break intended to finance the platform, a prerequisite for Related to build four mixed-use towers delivering approximately 4,000 residential units (mostly luxury rentals with a minimum of 625 affordable apartments), green space and a school. The Mamdani administration recently showed signs of cooling on the tax break.
The disruptions didn’t appear to dent Blau’s overall message.
“New York City is our home,” Blau concluded, urging stakeholders not to give up on the city’s resilience.
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