WTC complex progress stalls amid slow office leasing environment

Jul.July 25, 2012 06:00 PM

Even as the World Trade Center complex takes shape, Larry Silverstein is still struggling to secure office tenants for two of his buildings, the Wall Street Journal reported. Even rumors surrounding potential tenants for these properties — especially 3 World Trade Center — have run dry.

The structure, at 3 World Trade Center, is now stalled at eight stories thanks to a deal that requires he fill at least 400,000 square feet of space to continue building the 80-story, 2.8 million-square-foot tower. UBS was previously in talks to take space at the building, but pulled out. Sources to the Journal said that Viacom and Citigroup were among other firms that had discussed leasing space in the tower, but they both decided to renew their current leases.

Without a tenant, the eight floors would have to top off the structure and potentially open it to retail, the Journal wrote, despite Silverstein previously denying these rumors.

Meanwhile, plans for 2.4 million-square-foot 2 World Trade Center have been put on hold due to the lack of prospective tenants. Silverstein himself remains confident that he can resume building 3 World Trade Center, as does Janno Lieber, Silverstein Properties’ president of the World Trade Center properties. Lieber attributes the challenge in securing a tenant to the slow recovery — the predominant reason being lease renewals.

As previously reported, big lease renewals were a boon to the second quarter’s office leasing volume. [WSJ]

Related Articles

Silverstein Properties' Tal Kerret, Dino Fusco, Marty Burger and 7 WTC (Credit: Joe Woolhead)

Former Goldman exec will be new COO at Silverstein Properties

Governor Andrew Cuomo (Credit: Getty Images)

Cuomo rakes in real estate cash — but not from LLCs

120 Broadway and Thornton Tomasetti’s Peter DiMaggio, Tom Scarangello and Michael Squarzini (Credit: Google Maps)

Thornton Tomasetti takes 100K sf at 120 Broadway

Moinian Group CEO Joseph Moinian, and a street view of the new Best Buy location (535 Fifth Avenue, at left) and the old one (529 Fifth Avenue, at right) 

Best Buy signs lease for new store at 535 Fifth

Larry Silverstein (Credit: Getty Images, iStock)

Silverstein’s lending biz could get a boost from the weak luxury condo market

Larry Silverstein and the Tel Aviv Stock Exchange (Credit: Getty Images)

Institutional investors swarm Silverstein’s new TASE bonds

3 World Trade Center

WATCH: Inside the nearly completed 3 WTC

Larry Silverstein (photo by Max Dworkin)

The Closing: Larry Silverstein