The Genius Economics of the Empire State Building

The Genius Economics of the Empire State Building

The Empire State Building: A Marvel of Engineering and Design

The Empire State Building, completed almost 100 years ago, was the tallest building in the world and a self-sustaining vertical city, featuring its own postal system and cafe. Its innovative design made it a highly profitable enterprise, generating over $500 million annually, outperforming modern skyscrapers. The building’s success is attributed to its designers’ long-term thinking and ability to overcome strict building regulations, allowing for its record-breaking construction.

The History of the Empire State Building

Advances in construction methods enabled the building of taller and stronger structures, particularly in New York City where limited space and a growing population made building upwards the only option, sparking a “race into the sky” with developers aiming to construct the world’s tallest skyscrapers, driven by ego and financial opportunity, culminating in the announcement of the Empire State Building in 1929. The building was designed to be the most economically successful building, with features like exclusive viewing platforms and premium office space, as part of a competition to build the tallest structure.

Design and Construction Challenges

Building higher becomes increasingly expensive due to the need for stronger materials, resulting in less usable space and lower income. New York’s building rules, which included a sloped line restriction to prevent skyscrapers from blocking out too much light, led designers to incorporate setbacks, reducing the building’s width to comply with regulations. A traditional pyramid shape is impractical for a skyscraper due to uneven elevator demand and reduced profitability, with premium office spaces near windows and high above streets being most desirable and expensive, while areas closer to the ground are less valuable.

Construction and Completion

Developers bought a plot of land in Midtown, New York, for $16 million, hoping it would become the new business center. After demolishing the old Waldorf Hotel, they had a rare, large plot, ideal for building the world’s tallest building. The construction had to be completed in record time and on a tight budget of $35 million to meet New York’s lease dates of May 1st or October 1st. The Empire State Building had to be finished by May 1st, 1931, to avoid financial losses, prompting an efficient construction process with pre-fabricated steel columns and beams, hundreds of daily deliveries, and over 3,000 workers, resulting in the building rising by more than four floors each week.

Initial Struggles and Eventual Success

A large building with multiple restaurants and floors was constructed in just 12 months at a cost of $25 million. However, its completion coincided with the worst financial crash in American history, leading to high vacancy rates and earning it an unfortunate nickname. Fortunately, its observatories on the 86th and 102nd floors attracted tourists, offering a unique view of New York. The Empire State Building was a massive hit, selling over 1 million tickets in its first year and becoming a main revenue stream until its offices recovered from the crash.

Legacy and Current Status

Today, the Empire State Building generates around $30 million annually and its viewing platforms bring in $130 million every year, with the building’s overall value exceeding $2 billion, solidifying its status as an engineering masterpiece. The building’s antenna enabled TV broadcasting across four states, earning $7 million annually, and remained the tallest building for 40 years. The Empire State Building houses major brands and maintains its iconic status, with its offices generating $350 million from office rentals and $30 million from TV and radio antennas.

Comparison to Modern Experiences

A similar battle for supremacy can be experienced in War Thunder, a free-to-play multiplayer action game with dynamic battles using various vehicles in locations worldwide. War Thunder features advanced technologies, including night vision and guided missiles, creating an immersive battle experience. Players can download War Thunder for free on various platforms, including PC, PlayStation, and Xbox, with new players and those who haven’t played in half a year receiving special bonuses. A mobile version is also available for iOS and Android.


Key Vocabulary

Term Definition Example Usage
Self-sustaining vertical city A building that has its own amenities and services, such as postal systems, cafes, and offices, allowing it to function independently. The Empire State Building is an example of a self-sustaining vertical city, with its own postal system and cafe.
Long-term thinking The ability to plan and make decisions with future consequences in mind, rather than just focusing on short-term gains. The designers of the Empire State Building demonstrated long-term thinking by overcoming strict building regulations to achieve record-breaking construction.
Setbacks The reduction in width of a building as it rises, often used to comply with building regulations and allow more natural light to reach the streets. The Empire State Building’s designers incorporated setbacks to reduce the building’s width and comply with New York’s building rules.
Pre-fabricated steel columns and beams Building components that are manufactured in a factory and assembled on-site, allowing for faster and more efficient construction. The Empire State Building’s construction used pre-fabricated steel columns and beams to achieve a record-breaking construction time.
Observatories Platforms or areas that offer a view of the surrounding area, often used for tourism or recreational purposes. The Empire State Building’s observatories on the 86th and 102nd floors attracted tourists and became a main revenue stream.
Antenna A device that transmits or receives radio or television signals, often used for broadcasting or communication purposes. The Empire State Building’s antenna enabled TV broadcasting across four states and earned $7 million annually.
Engineering masterpiece A structure or system that is considered exceptional or innovative in its design, construction, or functionality. The Empire State Building is considered an engineering masterpiece due to its innovative design and record-breaking construction.
Iconic status A reputation or recognition that a person, place, or thing has achieved due to its uniqueness, excellence, or cultural significance. The Empire State Building has maintained its iconic status as a symbol of New York City and a marvel of engineering.
Free-to-play multiplayer action game A type of video game that allows players to play together online without requiring a purchase or subscription. War Thunder is an example of a free-to-play multiplayer action game that features dynamic battles and advanced technologies.
Immersive battle experience A type of gaming experience that simulates realistic and engaging combat scenarios, often using advanced graphics and sound effects. War Thunder offers an immersive battle experience with its dynamic battles and advanced technologies, such as night vision and guided missiles.

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The Genius Economics of the Empire State Building

Vocabulary Quiz

1. Which word means ‘lasting or existing for a long time’ in the context of the Empire State Building’s success?

A) Economically
B) Self-sustaining
C) Long-term
D) Vertical

2. What was the main reason for incorporating setbacks in the Empire State Building’s design?

A) To increase the building’s width
B) To reduce construction costs
C) To comply with New York’s building rules and prevent skyscrapers from blocking out too much light
D) To create more premium office space

3. What was the primary challenge in building higher, according to the text?

A) Finding suitable materials
B) Meeting strict building regulations
C) The need for stronger materials, resulting in less usable space and lower income
D) Attracting tourists to the observatories

4. What was the consequence of the Empire State Building’s completion coinciding with the worst financial crash in American history?

A) High occupancy rates and immediate financial success
B) The building became an instant iconic landmark
C) High vacancy rates and earning an unfortunate nickname
D) The building’s construction was halted

5. What feature of the Empire State Building enabled TV broadcasting across four states and earned $7 million annually?

A) Its observatories on the 86th and 102nd floors
B) Its premium office space
C) Its antenna
D) Its postal system

Answer Key:

1. C
2. C
3. C
4. C
5. C


Grammar Focus

Grammar Focus: The Use of the Passive Voice for Attributing Causes or Results

The passive voice is used to emphasize the action rather than the doer, and it is particularly useful when discussing causes or results of actions. For example, in the sentence “The building’s success is attributed to its designers’ long-term thinking and ability to overcome strict building regulations,” the passive voice is used to focus on the success of the building and the factors that contributed to it, rather than on who attributed the success. This construction is common in formal and academic writing, where the emphasis is on the outcome rather than the agent performing the action. Another example from the text is “A traditional pyramid shape is impractical for a skyscraper,” where the passive voice is used to state a fact without specifying who finds it impractical. The passive voice can also be used to describe processes or results, as seen in “The construction had to be completed in record time and on a tight budget,” which emphasizes the necessity of completing the construction quickly and within budget.

Grammar Quiz:

1. The Empire State Building ________ to be the tallest building in the world when it was completed.
A) was designed
B) is designing
C) has been designed
D) was considered

2. The building’s success ________ to its innovative design and the ability to overcome strict regulations.
A) has attributed
B) is attributed
C) was attributed
D) attributes

3. The construction of the Empire State Building ________ in just 12 months at a cost of $25 million.
A) was completed
B) has been completing
C) is completing
D) completes

4. The Empire State Building’s antenna ________ to enable TV broadcasting across four states.
A) was used
B) is used
C) has been used
D) was designed

5. The building’s viewing platforms ________ to bring in over $130 million annually.
A) are attributed
B) have been attributed
C) were attributed
D) attribute

Answer Key:

1. A) was designed

2. B) is attributed

3. A) was completed

4. D) was designed

5. A) are attributed

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