Developer Vornado Realty Trust is holding off on plans to build office towers around New York City’s Pennsylvania Station amid elevated construction financing costs and a slower-than-expected return of Manhattan office workers after COVID-19.
Michael Franco, Vornado president and chief financial officer, told investors on a Feb. 14 call that it would likely be two or three years before markets “settle down” and the company moves ahead with project starts to build three office towers and renovate others in the area around the rail hub it has designated Penn District.