Downtown becoming tax haven for tenants

GroupM's potential 3 WTC lease could come with millions in savings

New York /
Aug.August 26, 2013 10:40 AM

Tenants who move Downtown can avail themselves of generous tax breaks and incentives.

Droga5, a trendy advertising firm that recently took 92,000 square feet over five floors at 120 Wall Street, received $800,000 from the state’s World Trade Center Job Creation and Retention Program (JCRP) to be paid out over the life of its 15-year lease. The company will also be eligible, through a tax reduction program available Downtown, for up to $2.50 per square foot off its rent, which could be worth $225,000 annually, Crain’s said. In exchange, the company will add 154 jobs by the end of 2017.

Tax breaks are likely to cost the city $224.9 million through 2015, according to a report by the Independent Budget Office seen by Crain’s. In addition, $252 million in JCRP funds have been awarded so far, with another $43 million to come.

Such benefits have been par for the course in Lower Manhattan post 9/11, but are coming under greater scrutiny as the area’s popularity grows, according to Crain’s.

Advertising giant GroupM, which is in talks to take about half a million square feet at 3 World Trade Center, could get millions of dollars in breaks. [Crain’s]  – Hiten Samtani


Related Articles

arrow_forward_ios
Larry Silverstein with 120 Broadway
Housing agency nabs two floors at Silverstein’s 120 Broadway
Housing agency nabs two floors at Silverstein’s 120 Broadway
34-24 Hunters Point Ave
City accuses its landlord of gaming property taxes
City accuses its landlord of gaming property taxes
Senator Chuck Schumer and Senator Joe Manchin (Illustration by Kevin Cifuentes for The Real Deal with Getty)
Manchin-Schumer deal closes real estate tax loophole
Manchin-Schumer deal closes real estate tax loophole
L+M’s Ron Moelis and 180 Broome Street (L+M, City Realty, iStock)
L+M accused of overcharging tenants at 421a building
L+M accused of overcharging tenants at 421a building
From left: General Motors Building, One Vanderbilt, MetLife Building, and the International Building (Wikipedia, iStock)
Nation’s highest-taxed office buildings are all in one neighborhood
Nation’s highest-taxed office buildings are all in one neighborhood
Industrious co-founder Justin Stewart and 25 Broadway/Cunard Building (LinkedIn, Tdorante10/CC BY-SA 4.0/via Wikimedia)
Industrious partners with Wolfson for 44K sf at Cunard Building
Industrious partners with Wolfson for 44K sf at Cunard Building
Midtown Equities' Joe Cayre and 10 South Street in Manhattan (Casa Cipriani)
Casa Cipriani owners land $100M refinancing
Casa Cipriani owners land $100M refinancing
Vice Media CEO Nancy Dubuc and 225 Broadway (Getty Images, Google Maps, iStock)
Refinery29 subleasing at 225 Broadway for move in with Vice
Refinery29 subleasing at 225 Broadway for move in with Vice
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...