Image courtesy of Michael Vadon’s Flickr
It was recently revealed that One World Trade Center still has a 25 percent vacancy rate four years after opening its door, and that number is about to grow. The first tenant to move into the building in 2014, Condé Nast is now looking to sublease a third of its one-million-square-foot office space. As part of its consolidation plan, the media company on Monday said it’s looking to sublease seven of the 23 floors it currently rents as a way to cut costs, according to the New York Post. It’s estimated Condé Nast paid roughly $50 per square foot when it moved in nearly four years ago–space at One WTC is now worth $75 per square foot.
All offices are moving except those of executives for Advance Publications, Condé’s parent company, who sit on the 43rd floor. Eventually, all of the publisher’s magazines will be affected by the change because 16 floors will be reconfigured for them to share the space. The copy editing and design teams will also be located on the same floors.
The publishing company will renovate its remaining floors, revamping them two at a time. While no start date has been set, the process is estimated to take 18 months. “Since we are living here and renovating at the same time, the lessees will move in once our new floors are completed,” a spokeswoman told the Post.
Despite Condé Nast’s large footprint at One WTC, although soon to be smaller, the building still has a vacancy rate of 25 percent. To attract new tenants, the Durst Organization announced it will switch leasing agents from the Cushman & Wakefield team led by Tara Stacom to Newmark Knight Frank, according to Commercial Observer.
“The Durst Organization and Cushman & Wakefield collectively agreed that the timing was right for a change for the last phase of the leasing campaign. This is an opportunity to continue the momentum that Cushman & Wakefield has created over the past 12 years,” Eric Engelhardt, the senior managing director of leasing at One WTC, said in a press release.
[Via NY Post]
- The Port Authority Paid $47.6M in 2015 to Cover Condé Nast’s Move to One WTC
- Architect claims SOM stole his design for One World Trade Center
- Renderings revealed for Gensler’s communal sky lobby at One World Trade Center
Neighborhoods : Financial District