Demolition work is set to begin on the Central Warehouse in Albany, with $11.6 million in state funding allocated through Restore New York and the Regional Economic Development Council. The project aims to encourage community development by removing a building that has been considered a barrier to investment and economic growth for decades.
The funding was recommended by the Capital Region Economic Development Council as part of broader efforts to eliminate blighted structures and support neighborhood revitalization. This demolition is also aligned with Governor Kathy Hochul’s Championing Albany’s Potential (CAP) Initiative, which involves a $400 million state investment intended to revitalize Albany’s downtown core.
Governor Hochul commented on the significance of the project: “Out with the old and in with the new — the Central Warehouse has been an eyesore for our State’s Capital Region, and today, we are finally taking the necessary steps to do something about it,” Governor Hochul said. “The demolition of the Central Warehouse will not only eliminate blight, unused spaces, but it’ll allow for new opportunities to bolster the community and uplift economic growth.”
Albany County Executive Daniel P. McCoy acknowledged both state and county contributions: “Thank you to Governor Hochul for her steadfast support of this effort, adding more than $11.6 million to our County ARPA fund investment of $3 million to get this project over the finish line. The Central Warehouse has been the biggest eyesore in upstate New York for decades and became a symbol of economic decline rather than growth. Its demolition will mark a new chapter for our community and serve as a powerful reminder that change can happen, even if it takes years of persistence. Now, we will begin the process of envisioning what happens next.”
The Central Warehouse is located alongside I-787 at an entrance point to Downtown Albany. Over several decades, attempts were made to rehabilitate its 11-story structure, but officials determined that demolition was necessary due to ongoing deterioration.
The project includes an initial six-month asbestos abatement phase followed by demolition. Approximately 90,000 tons of clean concrete from the site will be sent offsite for reuse or recycling instead of going into landfills. After removal, a 1.1-acre site will be available for future investment in an area experiencing growth within Albany.
Governor Hochul’s CAP Initiative was established under her FY26 Budget as a collaborative state-led effort exceeding $400 million in partnership with local stakeholders. The initiative includes $200 million earmarked for projects designed to reinvigorate commercial corridors, strengthen small businesses, promote housing growth, and revitalize underutilized real estate and open spaces. Additionally, up to $150 million is designated for transforming cultural experiences such as improvements at the State Museum; up to $40 million is planned for reconnecting communities separated by Interstate 787; and $1.5 million will go toward public safety enhancements.
Earlier this month, Governor Hochul launched the CAP Initiative’s first Downtown Albany Strategy public workshop at Albany Capital Center with over 700 participants from various sectors including residents, business representatives, academia, and government partners.
Empire State Development President, CEO and Commissioner Hope Knight commented on the impact: “For years, Central Warehouse has loomed over the Capital City skyline in disrepair, and the demolition of this longstanding blighted building represents a new era for Downtown Albany. Under Governor Hochul’s leadership, and in partnership with Albany County, bold actions are finally being taken, which will support new opportunities for revitalization and community development at a crucial point in the city’s long history.”
