NEW YORK – New York City Mayor Eric Adams, New York State Governor Kathy Hochul, and the United Nations Development Corporation (UNDC) have announced a $500 million development plan for One and Two United Nations Plaza that will help create more than 1,800 jobs and infuse billions of dollars back into the city’s economy. As part of the agreement, the United Nations (UN) has committed to long-term leases of space at UN Plaza, creating an estimated 1,800 jobs, securing New York City’s reputation as a global capital, and supporting the city’s effort to revitalize commercial office space.
The development plan is expected to support approximately 1,800 construction and related jobs, in addition to preserving thousands of existing jobs created directly or indirectly by the UN community. Finally, more than 20,000 full- and part-time jobs in New York City are attributable to the presence of the UN community, through both direct employment as well as through the number of jobs its presence is estimated to support.
The project will include building-wide renovations by UNDC, together with renovations by the tenants of their leased office space. CBRE acted as advisor to UNDC, and Newmark acted as advisor to the UN for the project. The total project will cover approximately 900,000 square feet. Building-wide renovations will include new systems with enhanced energy efficiencies under New York state’s BuildSmart 2025 program, which will help the state achieve its ambitious energy goals to make it more affordable, cleaner, and resilient for all New Yorkers. Additional projects include updates to current fire safety, and disability codes and regulations.
The architect for the project is Spacesmith; the mechanical, electrical, and plumbing engineer is Cosentini Associates; and the construction manager is Turner Construction Company. Construction is expected to begin in the second quarter of 2025, and the project will be completed in approximately 48 months. Turner Construction Company has signed a Project Labor Agreement with the Building and Construction Trades Council that will benefit trade contractors and result in cost savings for the project. UNDC plans to issue up to $380 million in bonds to fund the project. The underwriters for the financing will be Goldman Sachs and Siebert Williams Shank.
UNDC is a public benefit corporation established by New York state in 1968 to provide office space and other facilities for the UN community. UNDC developed and operates the UN Plaza buildings, which were designed in the 1970s and 1980s by Kevin Roche, recipient of architecture’s highest honor, the Pritzker Prize. One and Two UN Plaza, which include office space and a hotel on the top floors, together with Three UN Plaza, were developed to meet the needs of the UN as it expanded. The planned development of One and Two UN Plaza will enable further consolidation of UN personnel, maximizing efficiencies for the organization. The United Nations Children’s Fund (UNICEF), which maintains its world headquarters at Three UN Plaza, will own the building in 2026.
“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 create1,800 jobs in the process, re-energize our commercial office space, and generate billions in economic impact for our city. ‘Jobs Week’ doubles down our efforts to make New York City the best, most affordable place to raise a family, starting with delivering the best jobs on the globe.”
“This $500 million investment by the United Nations Development Corporation is more proof that New York’s resurgence is in full swing,” said New York Governor Kathy Hochul. “Projects like this create good-paying jobs, drive economic growth, and reinforce our position as the global capital of commerce and diplomacy. When we build, we create opportunity — and there’s no better place for it than right here in Manhattan.”