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
| Feb 17, 2012
MacInnis joins Gilbane board of directors
MacInnis is the chairman and recently retired CEO of Connecticut-based EMCOR Group, Inc.
| Feb 16, 2012
Gain greater agility and profitability with ArchiCAD BIM software
White paper was written with the sole purpose of providing accurate, reliable information about critical issues related to BIM and what ArchiCAD with advanced technology such as the GRAPHISOFT BIM Server provide as an answer to address these issues.
| Feb 16, 2012
TLC Engineering for Architecture opens Chattanooga office
TLC Engineering for Architecture provides mechanical, electrical, structural, plumbing, fire protection, communication, technology, LEED, commissioning and energy auditing services.
| Feb 16, 2012
Summit Design + Build begins build-out for Emmi Solutions in Chicago
The new headquarters will total 20,455 sq. ft. and feature a loft-style space with exposed masonry and mechanical systems, 15 foot clear ceilings, two large rooftop skylights and private offices with full glass partition walls.
| Feb 16, 2012
Highland named president of McCarthy Building Companies’ California region
Highland moved into this new role in January 2012 following a six-month transition period with Carter Chappell, the company’s former president, California region.
| Feb 16, 2012
Big-box retailers not just for DIYers
Nearly half of all contractor purchases made from stores like Home Depot and Lowe's.
| Feb 16, 2012
4.8-megawatt solar power system completed at Jersey Gardens Mall
Solar array among the largest rooftop systems in North America.
| Feb 15, 2012
Fourth-generation Ryan to lead Ryan Companies AE team
Ryan leads a team of eight architects, four civil engineers, two landscape architects and two virtual building specialists in their efforts to realize their customer’s vision and needs through Ryan’s integrated project delivery system.
| Feb 15, 2012
NAHB sees gradual improvement in multifamily sales for boomers
However, since the conditions of the current overall housing market are limiting their ability to sell their existing homes, this market is not recovering as quickly as might have been expected.
| Feb 15, 2012
Skanska secures $87M contract for subway project
The construction value of the project is $261.9 M. Skanska will include its full share, $87 M, in the bookings for Skanska USA Civil for the first quarter 2012.