Times Square Growth Can Take the Punch of a Slight Economic Setback

NEW YORK CITY-With insiders close to the deal reporting that lease conditions between Boston Properties and Arthur Andersen have been met, some still question the area’s ability to support so much new space. The new building is planned for an island surrounded by Seventh Ave., Broadway, 42nd St. and 41st St. and is expected to create 1.2 million new sf where a mostly empty office building now stands. This is the fourth tower planned by Boston Properties here.

Times Square, long a tourist destination, has emerged in the last several years as a spot for family entertainment. It has also become a destination for shoppers with a variety of retailers and for high-end businesses like Reuters. With neon lights and ads galore, it has become a symbol of capitalism, glowing in a flourishing economy.

The Arthur Anderson deal is, according to GlobeSt.com’s sources, for 524,000 sf of space in a 47-story building. Conditions upon which the deal hinges include Boston Properties actually completing acquisition of the property from Prudential Insurance Co. The office property and the Times Square Brewery there now will be torn down to make room for the new $600 million facility.