**5 Times Square Set for Office-to-Residential Conversion, Creating 1,250 New Homes**
The Empire State Development board of directors has approved an amendment to the 42nd Street Development General Project Plan, paving the way for 5 Times Square to be converted from underutilized office space into a mixed-use residential development. The project will create 1,250 new homes, including 313 affordable housing units. Originally constructed in 2002 as the headquarters for Ernst & Young—which vacated the building in 2022—5 Times Square is now poised for a significant transformation.
The redevelopment will be part of the Adams administration’s Office Conversion Accelerator and is supported by recent policy changes. These include the removal of the 12 Floor-to-Area Ratio (FAR) residential cap, which previously restricted the density of housing developments in New York City. Additionally, the project will benefit from the newly introduced 467-m tax incentive program, designed to encourage the conversion of commercial office spaces into residential units.
“5 Times Square is a game-changer for Times Square and Midtown, paving the way for the future of urban growth,” said Adolfo Carrión, Jr., Deputy Mayor for Housing, Economic Development, and Workforce. “By converting underutilized office space into over a thousand new homes, including hundreds of affordable units, we’re reimagining central business districts as vibrant, mixed-use communities that foster both residential life and economic opportunity.”
The conversion marks a significant step toward addressing New York City’s housing shortage and reflects a broader trend of rethinking the use of commercial real estate in the post-pandemic urban landscape.
