What’s Next for 5 Times Square? 1,250 New Homes in the Heart of NYC

5 Times Square: Office to Residential Conversion

By Colin O'Leary

The iconic tower at 5 Times Square, once the bustling headquarters of Ernst & Young, is poised for a major transformation. In a bold move that reflects changing trends in urban living and work, nearly 918,000 square feet of vacant office space will be converted into residential units. The project will bring 1,250 rental apartments to the heart of Midtown Manhattan, including 313 units reserved as permanently affordable housing. This conversion is among the largest of its kind in New York City history and is being hailed as a milestone in reshaping Midtown’s commercial core into a more livable, mixed-use neighborhood.

Led by RXR in partnership with Apollo Global Management and SL Green Realty, the redevelopment is part of a broader push to adapt underutilized office buildings into much-needed housing. Gensler, a global architecture and design firm, is behind the redesign. The conversion is made possible through policy changes under the “New” New York Action Plan and the Midtown South rezoning initiative, which lifted zoning and floor area restrictions to encourage conversions. Additionally, the project will benefit from the 467-m tax incentive, which is designed to support residential construction in former commercial buildings.

The new building will offer a mix of units geared toward singles and young professionals, with 1,050 studios and 200 one-bedroom apartments. Affordable units will be available to households earning at or below 80 percent of the area median income, ensuring that the development includes a diverse mix of residents. The project will also preserve 37,000 square feet of ground-floor retail and is ideally located near 12 subway lines, making it exceptionally transit-friendly.

Construction is expected to begin by the end of 2025, with the first phase slated for completion by 2027. In addition to addressing the city’s housing shortage, the project will generate approximately 1,400 construction jobs and 830 permanent jobs. The conversion reflects a growing trend as office buildings, many of which remain significantly vacant post-pandemic, are repurposed to meet the city's residential needs. In the case of 5 Times Square, the vacancy rate has hovered around 77 to 80 percent, underscoring the urgency and opportunity of the conversion.

This project is emblematic of a broader vision to breathe new life into Midtown Manhattan, making it a true 24/7 neighborhood rather than a district that empties out after office hours. With its strategic location, robust amenities, and a blend of market-rate and affordable housing, the transformation of 5 Times Square stands as a hopeful symbol of New York City's adaptability and resilience.

If you're thinking about making a move in NYC—whether buying, selling, or renting—The Big City Team is here to help you navigate the evolving real estate landscape. Reach out to us today at 646-300-2012 to schedule a free consultation.