Lease Beat

Children’s Aid Society Signs 29K-SF Sublease With Condé Nast

711 Third Avenue (Photo: CoStar).

Nonprofit Children’s Aid Society has signed a 29,240-square-foot deal with sublandlord Condé Nast at office building 711 Third Avenue, Commercial Observer has learned.

“The Children’s Aid Society sought new headquarters space following the sale of its long-term home at the United Charities Building on Charity Row in Manhattan,” said JLL‘s Ellen Herman in prepared remarks. “The nonprofit was able to achieve exceptional value from the sale of the property and is relocating to newer space at 711 Third Avenue. The transaction puts the organization one block away from Grand Central Terminal and down the street from another of its locations.” Read More

Straight... No Chaser

The Strength of the Downtown Market

Do you smell smoke? I don’t know if I smell smoke, but the New York office leasing market is on fire. Everywhere you go Downtown—from Midtown south, Park Avenue south, Chelsea, Soho and many other locations—the real estate is white hot. The vacancy rate in Manhattan continues to recede, now at just 9.7 percent. We Read More


Slideshow: Lunch Options for Lower Manhattan’s Condé Workers

10 Photos

The view from inside 1 WTC.

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. Read More

World Trade Center

1 WTC: Inside the Tallest Building in the Western Hemisphere

One World Trade Center

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. Read More


Asking Rents Reduced at 1 World Trade Center

(Photo: Andrew Burton/Getty Images)

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. Read More

Sales Beat

Deutsche to Buy Stake in 222 Broadway: Report

222 Broadway.

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. Read More

Sammons Says

The Manhattan Office Market: Absorbing It All

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

Power Broker

Family Matters: Tara Stacom on 1 World Trade Center

Tara Stacom. (Credit: Cushman & Wakefield)

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. Read More

Wired City

Wired Opens Manhattan Store


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.

Read More

Year in Real Estate

The 10 Biggest Leases of 2013


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.

Read More

Lease Beat

US Army Corp, Customs to Join GSA at 1WTC


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

Power Broker

On Top of the World: Durst Organization Director of Leasing Eric Engelhardt on Leasing Up 1 WTC


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. Read More