Making the Move
Yesterday, media conglomerate Condé Nast started moving into its new offices at the 104-story 1 World Trade Center, a milestone that bookends the 13-year period when the complex was closed for business. Though USA Today reported that only roughly 170 of the company’s employees moved into the space this week, an additional 3,000 are expected to relocate by early 2015.
One World Trade Center is slightly less than 60 percent leased, with most of the lower floors having been signed (Commercial Observer reported yesterday that Condé Nast signed its 25-year lease well over three years ago). When completely leased, an estimated 12,000 tenants will occupy the building, providing a tremendous boost to downtown retailers in the vicinity.
World Trade Center
It’s finally happening—Condé Nast has started making the permanent trek from its long-time digs in Times Square to Lower Manhattan’s 1 World Trade Center.
Three years and seven months after signing its lease, the publishing giant is moving its more than 2,000 employees several miles downtown in waves starting today and ending at the beginning of next year.
As construction workers hammered on the World Trade Center site and hordes of tourists mingled with afternoon commuters last week, Jordan Barowitz of the Durst Organization invited Commercial Observer for an exclusive tour of One World Trade Center.
Although more than 2,500 laborers were applying the finishing touches to the 104-floor, 3-million-square-foot structure designed by David Childs of Skidmore, Owings & Merrill, the 1,776-foot building will open around November of this year, said Mr. Barowitz, Durst’s director of external affairs.
The Durst Organization and the Port Authority of New York and New Jersey are reducing asking rents at 1 World Trade Center by nearly 10 percent, according to a report by The Wall Street Journal. Asking rent for larger tenants on the building’s middle floors now stands at $69 per square foot, down from $75 per square foot.
The tower’s owner has struggled to attract private tenants to the development. Publisher Conde Nast’s 1-million-square-foot deal signed in 2011 remains the only major lease done at 1 World Trade Center. The building is 55 percent leased.
Deutsche Asset & Wealth Management has agreed to acquire a 95-percent stake in 222 Broadway, Real Estate Alert reported yesterday. The deal, brokered by Eastdil Secured, values the property at approximately $500 million.
Beacon Capital and L&L Holding Company paid Bank of America $230 million for the building in 2012. Boston-based Beacon is selling its equity stake in the building while L&L will stay on as a partner and building manager, according to the report.
Although it’s still early in the year, net absorption for the Manhattan office market is looking healthy. Breaking the latest figures down by submarket and district level reveals a few cracks, but nothing terribly alarming and, most importantly, nothing unexpected.
Through February, net absorption for all classes of Manhattan office product totaled positive 2.45 million Read More
Gleaming new skyscrapers. Swarms of young pedestrians. Cutting edge tech and creative office tenants. High-end retail. Sprouting condo towers. A new transportation hub.
This isn’t a city of the future—it’s the “New Downtown,” as Francis Greenburger of Time Equities described it to Commercial Observer last week.
The Stacom name has become almost synonymous with the country’s biggest real estate projects and deals. The foundations of that reputation were laid back in 1962 when the late Matthew Stacom brokered the sale of the development site that would become the Sears Tower, the Chicago office property that would later be declared North America’s tallest building.
Mr. Stacom’s daughters, Tara and Darcy, grew up with a constant reminder of their father’s landmark transaction: a photo of the Sears Tower on the wall of the family’s home.
Year in Real Estate
Condé Nast-owned Wired magazine opened its pop-up store for the holiday season in the Meatpacking District. The concept store will feature high-tech interactive displays featuring items from the company’s brand. Among items that will be sold at the store are electronics, kitchen gadgets, musical instruments and apparel.
For two years in row, 1 World Trade Center scored among the city’s largest transaction, starting with 2011’s Condé Nast showstopper and following with last year’s 270,000-square-foot UGS deal. But in 2013, the buzz moved uptown when another marquee deal, L’Oreal’s 400,000-square-foot commitment to the Related Companies, stole the headlines at the new Hudson Yards development.
Last year was a relatively modest one compared to 2011 when it came to office leasing, but 2013 saw a significant rebound—the top 10 deals totaled more than 2.7 million square feet, a 50 percent increase year over year. Like 2012, a variety of sectors made the list, from financial services to law firms to the media and publishing industries.
Below are the top 10 leases of 2013 by square footage, courtesy of Cushman & Wakefield.
The US Army Corp of Engineers and the US Customs and Border Protection agency will reportedly share the General Services Administration space at 1 World Trade Center.
The agencies will occupy 270,000 square feet of space and plan to move into the tower in 2015, according to a report that first appeared in the Read More
The World Trade Center site has been closed off from lower Manhattan and the rest of the city for 12 long years. But by this time next year, the site will be fully reintegrated back into the streetscape, and New Yorkers will reclaim the Downtown they once knew. It’s no coincidence that major developments at Read More
In 2010, with 1 World Trade Center rising slowly in the skyline of Lower Manhattan, the Durst Organization had a problem. The developer and its ownership partners at Port Authority still hadn’t secured an anchor tenant for the project.
Eric Engelhardt, who had previously sat across the table from the Port Authority pitching the case for a role in the development, was then part of Durst’s acquisitions and development group, and this time was on the same side of the table as the government agency—pitching Condé Nast.
One World Trade Center
MPA-The Association of Magazine Media has signed a 10-year, 12,199-square-foot lease at RFR Realty’s 757 Third Avenue, The Commercial Observer has learned.
The tenant will pay rent starting in the mid-$50s per square foot, according to data from CompStak. MPA, currently headquartered at 810 Seventh Avenue, will relocate in February when its current lease expires, according to a spokesperson who confirmed the deal.
The Durst Organization has set aside two floors totaling 94,000 square feet for a pre-built and build-to-suit program at One World Trade Center, the developer announced today.
The program—located on floors 45 and 46—is designed to accommodate up to 18 tenants. The two floors are being subdivided in to smaller spaces between 2,000 and 20,000 square feet.