NEW YORK CITY — In a transaction expected to transform the Lower Manhattan office market, Cushman & Wakefield Vice Chairman Tara Stacom and Executive Director Alan Stein have arranged a 1,046,262-square-foot, 25-year lease for media giant Condé Nast at One World Trade Center, the 3 million-square-foot, $3.1 billion tower under construction in downtown Manhattan.
The project is a partnership between The Port Authority of New York and New Jersey and The Durst Organization, whom Cushman & Wakefield represented in the lease negotiations. CB Richard Ellis (CBRE) Vice Chairmen Mary Ann Tighe and Gregory Tosko led a team that represented Condé Nast.
The Condé Nast deal stands as Lower Manhattan's largest, private-sector leasing transaction in 20 years. In addition, it’s the largest relocation ever from Midtown to Downtown, Stacom says.
“This is a very visible deal, and it’s not going to go unnoticed,” she adds. “Condé will bring further validity to the building and the site, and this One World Trade will help the entire downtown marketplace attract tenants.”
In fact, Stacom says, it already has. She notes that wedding website The Knot signed a 64,000-square-foot lease at 195 Broadway last week, at least partially influenced by the Condé Nast deal, which was pending at the time.
“Condé Nast’s decision to relocate into Lower Manhattan from Midtown is a transformative moment,” says Stacom. “Downtown has now evolved to a more diversified roster of businesses that include publishing, advertising, architecture and design, the law, the arts and myriad other creative professions that drive the New York City economy.”
The company will relocate its headquarters and consolidate its offices from several midtown Manhattan office buildings to occupy floors 20-41, approximately one-third of One World Trade Center’s office space.
“In the late 1990s, Condé Nast blazed a trail to Times Square, creating a new corporate headquarters district in Manhattan, and now, they are again trailblazing to lead the renaissance of Downtown,” said Mary Ann Tighe of CBRE. “This is far more than a ‘game-changer.’ This is a historic relocation that could be a New York City changer in the most visionary and positive sense.”
The transaction represents the second major corporate tenant to lease office space in One World Trade Center. China Center New York LLC, a division of Vantone Industrial Co., Ltd., signed a 190,810 square-foot lease in March 2009 to occupy a portion of the 64th floor as well as the entire 65th through 69th floors.
“We want to see a very diverse building in every respect, and the developers have sanctioned a philosophy to have a mix of tenants not only by industry, but also by size,” says Stacom. “In 3 million square feet you need the big anchor tenant, which we now have, and then we want to check the boxes across the landscape. We’re excited about the prospect that it could be fully leased by the time tenants move in.”
With an antenna tower rising to a peak at 1,776 feet, One World Trade Center will become the Western Hemisphere's tallest building upon completion, which is expected in 2013. The structure currently stands 67 stories above ground level, and a new floor of the tower is being completed every week. Upon full build-out, the property will consist of 3 million square feet of Class-A office space on 71 office floors, in addition to a public lobby with 50-foot ceilings and an observation deck 1,241 feet above ground. David Childs of Skidmore Owings & Merrill is the project’s architect.
In addition, One World Trade Center is expected to be the most environmentally sustainable project of its size in the world, incorporating features based on LEED Gold criteria.
“Companies today are looking for a more open, collaborative environment, and with column free floors, abundant natural light and high ceilings, Condé Nast can accomplish that easily at One World Trade,” says Stacom. “Consolidating their half a dozen or so offices into a new building will improve their efficiencies.”
— Dan Marcec