One World Trade Center, soaring to 1,776 feet and set to open by year's end, is having difficulty attracting tenants, according to a report in the Wall Street Journal.
Developer The Durst Organization and the Port Authority of New York and New Jersey have reduced asking rents for larger tenants to $69/sf, down from $75.
The 3.1 million-sf project—originally known as Freedom Tower—is reportedly the most expensive office tower ever built, at a construction cost of $3.9 billion. It is currently about 55% leased, according to the Wall Street Journal. Current large deals in downtown New York City have been made in the $50 to $60/sf range, making One World Trade unusually expensive for the market. The building is the largest in the Western Hemisphere and was designed by David Childs of Skidmore, Owings & Merrill after an initial concept was developed in Daniel Lieskind's master plan for the site.
Meanwhile, developer Larry Silverstein is still contemplating building an office tower named 3 World Trade on the site, after completing the 2.3 million-sf 4 World Trade (opened last fall and now 51% leased). Insiders now doubt that the Port Authority will approve Silverstein's proposed deal in light of questions about the match between available space and potential demand.
Related Stories
| Apr 10, 2013
6 funding sources for charter school construction
Competition for grants, loans, and bond financing among charter schools is heating up, so make your clients aware of these potential sources.
| Apr 10, 2013
23 things you need to know about charter schools
Charter schools are growing like Topsy. But don’t jump on board unless you know what you’re getting into.
| Apr 9, 2013
FMI predicts 8% rise in construction put in place for 2013
FMI, the largest provider of management consulting and investment banking services to the engineering and construction industry released today its Q1-2013 Construction Outlook. The forecast for total construction-put-in-place for 2013 continues to show an increase of 8% over 2012 levels.
| Apr 8, 2013
Most daylight harvesting schemes fall short of performance goals, says study
Analysis of daylighting control systems in 20 office and public spaces shows that while the automatic daylighting harvesting schemes are helping to reduce lighting energy, most are not achieving optimal performance, according to a new study by the Energy Center of Wisconsin.