The rebuilding of the World Trade Center (WTC) is an ongoing saga. It’s hard for me to believe that nearly nine years after the event of 9/11 construction is only now starting to get into gear. To call it a fiasco might be an understatement and I am overly thrilled with the final design. In addition, a lack of prime tenants (I would not consider the Port Authority of NY/NJ to be a prime tenant) had been of great concern to Larry Silverstein and his development team.
It’s no secret the publishing industry is in the midst of severe changes and employee downsizing. The future of publishing is fast evolving. So let’s say that one the largest and most successful publishers in the world (Conde-Nast – think Vanity Fair, Vogue, etc.) might be uncertain about their future in terms of how many people and they will employ (staff vs. freelance for example). What might they do?
Reading the article in today’s New York Times http://nyti.ms/cHwJyA gave me the idea that Conde-Nast moving out of Times-Square and down to the WTC is a nearly perfect arrangement. It gives the WTC a flagship tenant that very well could attract other possible prime tenants to head back downtown. Conde-Nast currently occupies 800,000 square feet at 4 Times Square as well as five other buildings in Manhattan. One million square feet out of 2.9 million total square feet will be a huge boost to Mr. Silverstein and his partners.
And what does Conde-Nast get? A back door perhaps? If for some reason Conde-Nast were to be smaller than they forecast, (I strongly suspect the brass at Conde-Nast have no idea what their personnel needs will truly be five years from now) they can simply renegotiate lease terms – less space, lower cost per square foot etc. In the meantime both parties can crow about a match made in heaven or at least the 110th floor of this 1,776 foot tower, (to be known as 1 World Trade Center after the term Freedom Tower was scrapped) which is to be the tallest building in the United States.
It’s a risk both parties have a good reason to strongly consider.