Observation decks atop Manhattan’s World Trade Center, Rockefeller Center and the Empire State Building offer sweeping panoramas that “stretch for miles,” according to a recent article in the Wall Street Journal. The three viewing platforms attract more than 9 million visitors combined each year. The revenue from these and other observation decks can be substantial.
For the most part it was difficult to determine the profitability of observation decks. But in 2011, when the owner of the Empire State Building went public as Empire State Realty Trust, information on the performance of the observation deck became public through SEC filings. The filing at the time indicated that the observation deck made more money than the office space!
Last year, the Empire State Building observatory produced $127.1 million in revenue or about 40% of the building’s total revenue, according to Empire State Realty Trust. As a result, more developers are adding observation decks to their developments. Related Cos. plans to open an observation deck at its Hudson Yards project and SL Green Realty Corp’s project at One Vanderbilt includes a 1,400-foot office tower under construction next to Grand Central Terminal.