Live video from ABC News showed part of the 75-foot-high crane dangling precipitously from a building at 57th Street and Sixth Avenue in Mahattan.
Authorities are concerned the crane may fall onto the streets below.
Firefighters were at the scene, and New York police shut down traffic what little traffic there was in the area, a local Fox affiliate reported.
No injuries were reported.
One57, the skyscraper under construction, is offering some of the most expensive apartments in New York, with a penthouse there recently closing for more than $90 million, according to The New York Times.
ABC News reported that all cranes in New York City were checked Sunday to make sure they were properly secured in advance of Hurricane Sandy.
Watch live video of the collapsed crane here.