One World Trade Center Landmark Deal
Cushman & Wakefield acted as the agency broker for The Port Authority of New York and New Jersey (PA) and The Durst Organization (Durst) to secure a 1.2 million-square-foot lease to Condé Nast (Condé) at One World Trade Center (OWTC). C&W cleared formidable obstacles to achieve what seemed improbable just three years earlier – bringing a first-class Midtown tenant to the World Trade Center.
Cushman & Wakefield commenced the assignment by first resolving questions relating to construction certainty and bureaucracy associated with the completion of World Trade Center project components. C&W initially completed a restructuring of the public/private partnership among site stakeholders enabling construction to smoothly proceed. This was followed by the successful execution of a competitive process to bring in a private-sector developer as a joint-venture partner to complete, lease and manage OWTC, which resulted in Durst’s selection.
The PA, Durst, and C&W demonstrated to Condé that OWTC was the only building and the PA was the only landlord in New York that were prepared and able to satisfy all of its real estate objectives. These included re-energizing Condé’s culture, consolidating multiple locations into 21st century “green” space, and supporting global re-branding, while doing so at an attractive occupancy cost. The timely completion of the lease allowed Condé to receive the remaining allocation of a $5-per-square-foot rent reduction credit provided by New York State that was applicable to a significant portion of Condé’s space. Following a detailed review of the lease at 4 Times Square, the PA, not typically a risk-taking organization, agreed to assume Condé’s remaining obligation after it moves into OWTC.