The Real Deal New York

Silverstein touts NYC commercial market, laughs off rumors of capping 3 WTC: VIDEO

February 29, 2012 10:00AM

Silverstein Properties President and CEO Larry Silverstein appeared on CNBC yesterday to discuss the commercial property market in the city and his developments at the World Trade Center construction site (see video above).

Silverstein said prices were “off the charts again” and even higher than they were before the crash. “There’s a huge amount of investment capital looking for a home,” he said. “That investment capital comes from all over the world, and its looking to invest, where? In America. Where in America? New York City.”

However the stability and equity appreciation the city offers are driving down capitalization rates, Silverstein said.

When asked why, if the market is so strong, Silverstein was rumored to be considering capping the planned 80-story structure at 3 World Trade Center at just seven floors, the developer laughed off the suggestion.

“That’s categorically wrong,” he said. “When we struck the deal back in 2010, the arrangement for the deal was we would go up seven stories. Once we found a tenant, the building would go all the way up to the total height.”

The city “needs the space,” he added.

Silverstein said he would like to see a tenant like Conde Nast, which took more than 1 million square feet at 1 World Trade Center, anchor 3 World Trade Center.