New York Construction Report staff writer
New York City Mayor Eric Adams, New York State Governor Kathy Hochul, and the United Nations Development Corporation (UNDC) unveiled a $500 million development plan today for One and Two United Nations Plaza. The initiative aims to generate over 1,800 jobs and inject billions of dollars into the city’s economy.
As part of the agreement, the United Nations has committed to long-term leases at the UN Plaza, securing New York City’s status as a global hub while revitalizing the city’s commercial office space. The announcement comes during “Jobs Week,” a citywide celebration of job creation and workforce development under the Adams administration, which has recently reported record employment and a drop in unemployment across all demographics.
“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,” Mayor Adams said. “This groundbreaking development plan for the UN Plaza will not only create 1,800 jobs but also re-energize our commercial office market, generating billions in economic impact.”
Governor Hochul echoed Adams’ sentiments, highlighting the plan’s significance for the city’s resurgence. “This $500 million investment by UNDC is more proof that New York’s resurgence is in full swing. When we build, we create opportunity — and there’s no better place for it than right here in Manhattan,” she said.
The project is expected to support approximately 1,800 construction and related jobs while preserving thousands of existing positions tied to the UN community. More than 20,000 jobs in New York City are directly or indirectly attributable to the presence of the UN, according to city officials.
“This investment, occurring as the UN celebrates its 80th anniversary, stands as a powerful testament to New York City’s continued leadership and the significant economic benefits the UN brings to New Yorkers,” said Edward Mermelstein, Commissioner of the Mayor’s Office for International Affairs.
UNDC Chairman George Klein noted that the development plan continues a nearly 80-year partnership between the United Nations and New York City. “This repositioning of the buildings, combined with new long-term leases, will strengthen this longstanding relationship for years to come,” he said.
The project will include building-wide renovations by UNDC, including energy-efficient upgrades as part of New York State’s BuildSmart 2025 program. Other improvements will address fire safety and disability accessibility codes. The development will cover 900,000 square feet of office and commercial space.
Work is expected to begin in the second quarter of 2025, with completion anticipated in approximately four years. Turner Construction Company, which has signed a Project Labor Agreement with the Building and Construction Trades Council, will oversee the project’s construction.
The development is part of a broader effort by the Adams administration to create good-paying, family-sustaining jobs. Last year, the administration’s “Jobs NYC” initiative connected nearly 8,500 job seekers with employment and workforce development resources. The city also celebrated the launch of large-scale projects across all five boroughs, including the Kingsbridge Armory in the Bronx and Willets Point in Queens, which are expected to create tens of thousands of permanent and temporary jobs.
“This historic investment strengthens New York City’s position as a global leader, committed to supporting both local and global economies,” said U.S. Representative Gregory Meeks. “This project will create nearly 2,000 jobs for hard-working New Yorkers.”
City officials and union leaders applauded the project’s potential to benefit local communities. Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York, emphasized the importance of the redevelopment in revitalizing Manhattan and creating union jobs. “We look forward to playing a role in seeing it to completion,” he said.
The redevelopment of UN Plaza is expected to be a key driver of economic growth and job creation, reinforcing New York City’s position as a cultural and economic hub.
