Once a freight depot and later a nightclub, New York’s Terminal Warehouse is being reborn as a 1.3 million-square-foot mixed-use complex — and it’s gunning for top-tier office tenants that typically gravitate to glossy new towers like those at Hudson Yards.

Constructed in 1891, the building’s red brick and cast-iron details now frame what developers L&L Holding, Columbia Property Trust, and Cannon Hill Capital call “an office environment that exists nowhere else.”

“We actually went around the country and just looked at what tenants were looking for in office,” said Ted Koltis, head of real estate at Columbia Property Trust. “The whole idea behind this was really to create an office environment that exists nowhere else.”

As part of the transformation, the development team demolished the building’s core to create a central courtyard, bringing in light and air, and added a new seven-story structure dubbed the Penthouse — one of the largest rooftop additions ever permitted on a landmarked New York building.

The Terminal Warehouse now boasts 1.1 million square feet of office space and 67,000 square feet of retail and restaurants. Leasing is in progress, with about 100,000 square feet of retail deals close to finalized and office discussions underway.

“This type of building [Terminal Warehouse] works better for some tenants more than others,” said Victor Rodriguez, CoStar senior director of market analytics. “You probably wouldn’t see Bank of America want to lease office space here.”

Yet for creative industries like media, advertising, and tech, the developers are betting its authentic industrial character, amenities, and location near the Hudson River Greenway will be irresistible.

“Terminal Warehouse has ‘irreplaceable authenticity and people know it when they see it,’” said Darin Reynolds, principal at CookFox Architects. “That’s the type of space companies in creative industries... are looking for.”

While shiny Hudson Yards towers like the Spiral (95.5% leased) and 30 Hudson Yards have quickly filled up, Terminal Warehouse offers a compelling alternative that blends sustainability and historic preservation.

“The most sustainable construction choice is nearly always going to be adaptive reuse,” said Erica Ceder, principal at DLR Group. “In contrast, adaptive reuse architecture capitalizes on the embodied energy of existing structures.”

As office tenants increasingly prioritize workplace experience, developers are confident the Terminal Warehouse can meet — and exceed — expectations.

Terminal Warehouse: Blending Old Bones with Modern Demands

The revival of Terminal Warehouse reflects a national trend in urban real estate: using adaptive reuse not just as preservation, but as competitive differentiation. With striking design choices — including exposed rail lines underfoot and reactivated spaces like rooftop terraces and the inner courtyard — the project marries 19th-century grit with 21st-century standards.

Developers also leaned into tenant preferences shaped by post-pandemic work models. According to a Cushman & Wakefield/CoreNet study, “about 85% of tenants expect landlords to provide enhanced amenities, services and workplace experiences.”

Terminal Warehouse fits the mold — and may even elevate it.

Positioned in Chelsea and steps from the Hudson River Greenway, the site offers both convenience and cultural cachet. That, say its backers, is exactly what many post-COVID companies want: flexibility, uniqueness, and identity.

The building joins a list of successful adaptive reuse projects in NYC, such as Empire Stores in Brooklyn and Google’s St. John’s Terminal. As Reynolds puts it, “you don’t want to renovate it to the point of not recognizing it.” At Terminal Warehouse, the past remains visible — but it’s the future that’s being built.

Originally reported by Andy Peters in Co Star.