Hudson Yards The Other Side Of The Tracks? Case Solution

1. Feasibility of undertaking the development of Hudson Rails

Taking the Hudson Rails case under consideration, it can be seen that the site has a lot of potential and opportunity to become profitable and yield high returns for the investors as well as become a place to attract more business and commercial activities. A major issue is that Hudson rails pose a similar picture as Canary Wharf which was the under-utilised dockyard of London. The attempt to develop the area by the works of Government and a developer, Olympics, however, failed badly making the company fall into bankruptcy. Thus, Related Companies might face a similar scenario since the traces of the softening of the economy can be observed as discussed in the case which would have a direct impact on the housing and retail markets and the overall economy (Zezza).

However, because it has been emphasised that the expectations are high that the office and the residential markets would rebound at a very quick pace, it is a safe sign to invest in Hudson rails despite the bad history of Canary Wharf due to different states of the economy in both the cases. Considering that New York has become densely populated with sparse space and rents spiking as high as 25-27%, there is a huge demand for cheaper housing and office needs to cater to people's growing needs. Therefore, Hudson, which is right on the edge of New York poses a huge potential to satisfy the people's needs of more residential and office areas. 

Furthermore, it is highlighted in the case that the neighbourhood filed a lawsuit against the relocation of Yankee Stadium in the area which shows their strong influence over the acceptance of proposals for the site. However, the project plan proposed by the Related Companies is very likely to receive the neighbourhood's approval as it is built on the foundation of improving the lifestyle and living standards of the people over thereby ensuring access to all the facilities including schools, parks, residential and office areas. Therefore, the neighbourhood's support who are the stakeholders will make a contribution in helping to slay the monster site (Doloi).

Apart from this, it is also important to note that Hudson is an under-utilised site and being able to develop it successfully would help give the company a first-mover advantage, generating tremendous returns. It is a very large site which has become a rare sight in New York due to it being densely populated. Therefore, it will be a large project and would be able to accommodate different areas of development which would help diversify risks in case an economic downturn hits the economy (De Reyck, Grushka-Cockayne and Lockett).