Port Authority mulls return of 150K sf of 4 WTC to Silverstein

October 23, 2013 08:19AM

The Port Authority of New York & New Jersey may be handing back 150,000 square feet of its surplus space at 4 World Trade Center to the tower’s developer Larry Silverstein, rather than put it on the sublease market. The agency is leasing 600,000 square feet on the 15th through 29th floors of the under-construction building, but had earlier indicated in a request for proposals that it would look to sublease three-and-a-half floors of the space.

But with Silverstein still looking to fill over a million square feet of space at the tower, it is unlikely that he would want to see a sublease on the market offering ostensibly cheaper rents, the New York Post reported, and so may be compelled to take back the space.

The sublease proposal was simply a ruse, sources told the Post, designed to gain leverage with Silverstein, who did not respond to the newspaper’s requests for comment. Douglas Durst, who is developing 1 World Trade Center with the Port Authority, told the Post that the agency may be looking at solutions other than a sublease.

“People thought it would be cheaper to keep other spaces than to move to those floors and the discussions are ongoing,” he said. “They could give back the space.” [NYP, 1st item]Hiten Samtani