Spotify Grows (Again) to 564K SF at 4 WTC
By Rey Mashayekhi September 21, 2018 12:09 pmreprints
Music streaming giant Spotify has once more expanded its footprint at 4 World Trade Center, this time inking an 85,666-square-foot deal to take its total space at the Financial District skyscraper to around 564,000 square feet.
The Stockholm-based company signed a roughly 15-year deal with the Port Authority of New York & New Jersey to sublease the entire 26th and 27th floors at the 72-story, 2.3-million-square-foot office tower, Crain’s New York Business reported this week.
While asking rent in the deal was not clear, the Port Authority disclosed in a July board meeting that it will net nearly $81 million over the course of the sublease after deducting costs, per Crain’s. Those costs include building out the space for Spotify and paying a $3.3 million commission to the subtenant’s broker, JLL.
The transaction is the second time Spotify has grown its presence at 4 World Trade Center after signing a 378,000-square-foot lease in early 2017 to house its U.S. headquarters at the Silverstein Properties-owned building. The company subsequently exercised an option to take an additional 100,000 square feet several months later, in July 2017, in a deal that took the tower to full occupancy.
It was not immediately clear whether the Port Authority had outside broker representation in the sublease negotiations. Representatives for JLL and Silverstein did not immediately return requests for comment.
The expansion makes Spotify the second-largest tenant in the building behind the New York City Human Resources Administration, which occupies roughly 608,000 square feet, according to CoStar Group data.
In addition to the HRA and the Port Authority—which is also headquartered at 4 World Trade Center—other tenants at the property include Zurich Insurance Group, MediaMath, Hudson River Trading and Global Atlantic Financial Group.