The Real Deal New York

First private-sector tenant at 1 WTC looks to cut space by half

Move comes as building's owners are decreasing rental rates due to tepid demand

May 27, 2014 03:05PM

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One World Trade Center

One World Trade Center

The China Center, the World Trade Center’s first private-sector tenant, is now looking to cut its commitment in the building by half.

The group, which aims to give Chinese businesses a foothold in the city by providing office space and other amenities, reportedly wants to trim its One World Trade Center space down to 100,000 square feet.

Despite the move to slim its space, the China Center is arranging to take three floors higher in the property — 88, 89 and 90 — which have more costlier rents than the firm’s previous space on floors 64 to 69, Crain’s reported. The group would pay rents of roughly $100 per square foot in the higher-level space, a 25 percent jump from the previously agreed-upon rent.

The news comes amid reports that the Port Authority of New York and New Jersey and the Durst Organization, a partnership at the helm of One World Trade, are slashing rents due to tepid demand. The 1,776-foot property is slated to open by the end of this year, but at the moment is only 55 percent leased, according to the Wall Street Journal. [Crain’s]Julie Strickland

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