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Halfway Home: With GSA Lease, 1 World Trade Center Now 50 Percent Full

Freedom Tower - Lower Manhattan - 1 World Trade Center

Last week, the General Services Administration of the United States signed a preliminary letter of agreement to lease 300,000 square feet at the LEED Gold-hopeful 1 World Trade Center. The deal would be for significantly less space than GSA originally projected (half). But coupled with Condé Nast’s recent 1 million-square-foot, $2 billion lease to become the 3 million-square-foot building’s anchor tenant, the deal bodes well for a more diverse mix of public and private sector tenants within the 1776-foot tower. It also vaults 1 World Trade Center past what Steve Cuozzo of the Post describes as the “psychologically crucial” 50 percent-leased threshold; in addition to Condé Nast, GSA joins Chinese real estate investment firm Beijing Vantone (200,000 square feet) among the tower’s first three tenants.

As you may recall, the Port Authority entered into an MOU (Memorandum of Understanding) with GSA back in 2006 for “occupancy of approximately 645,000 square feet.” GlobeSt.com interviewed Tara Stacom, vice chairman at Cushman & Wakefield back in July and reported that she was “unfazed” about 1 World Trade Center’s decrease in public sector space. “We’re very confident given who we have considering the building and who has expressed an interest–and then the great number of tours that the Durst Organization and Cushman & Wakefield are regularly giving,” Stacom said at the time. “We tour with such great frequency and, as we watch, people just light up as they go through the site and they really understand everything that it has to offer.”

Taking subsidies into consideration, GSA will pay an effective rent in the mid-$50s per square foot over what is rumored to be a 20-year lease on floors 50 through 56.

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Trackbacks/Pingbacks

  1. GSA Finally Signs 20-Year Lease and 1 WTC Is 55-Percent Filled | gbNYC Real Estate Group | Commercial Real Estate & Green Buildings in New York City - July 19, 2012

    [...] 1 World Trade Center’s anchor tenant, the deal vaults 1 World Trade Center past the crucial 50 percent-leased threshold. And in addition to Condé Nast, GSA formally joins Chinese real estate investment firm Beijing [...]

  2. GSA Finally Signs 20-Year Lease and 1 WTC Is 55-Percent Filled – insiderater.com - July 20, 2012

    [...] 1 World Trade Center’s anchor tenant, the deal vaults 1 World Trade Center past the crucial 50 percent-leased threshold. And in addition to Condé Nast, GSA formally joins Chinese real estate investment firm Beijing [...]

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