Port Authority spending $3M a month on Condé Nast’s rent at vacant former HQ

Agency has been covering lease for more than a year

TRD New York /
Apr.April 11, 2016 02:20 PM

UPDATED: April 12, 11:00 a.m.: The Port Authority of New York and New Jersey has paid more than $48 million to date for the former Condé Nast office space at 4 Times Square to remain vacant.

Condé Nast moved from Durst Organization’s 48-story office tower at 4 Times Square, where it had 840,000 square feet, to One World Trade Center in November 2014. The Port Authority has been forking over $3 million a month for more than a year.

The bi-state agency agreed to foot the bill for the lease at 4 Times Square in an effort to persuade Condé Nast to become the anchor tenant at One World Trade Center, where it has paid almost $100 million in rent.

As of late 2015, the agency spent $47.6 million on rent, Crain’s reported. The Port Authority will continue to pay the rent through 2019 — a total of $200 million — when the lease’s expire or if Durst finds a new tenant.

Durst and the Port Authority developed the tower, but it has not been easy to fill the 3.1 million-square-foot skyscraper. Media company Mic recently signed a lease for the entire 82nd floor, taking 36,000 square feet. A Durst spokesperson said about 2.1 million square feet has been leased at the tower.

The Port Authority has recently committed through its capital plan several big-ticket renovations and projects, including $10 billion slated for a new Midtown bus terminal, $20 billion for rail tunnel beneath the Hudson River, and at least $4 billion for the LaGuardia Airport overhaul. The agency’s chairperson John Degnan has suggested again recently that the authority sell its real estate holdings to fund transportation infrastructure projects. [Crain’s]Dusica Sue Malesevic

Correction: A previous version of this post stated One World Trade Center is a 3.5 million-square-foot skyscraper; it is 3.1 million. The post was updated with how much square footage has been leased at the tower.


Related Articles

arrow_forward_ios
TRD's Erik Enguist and Port Authority's Rick Cotton

Port Authority, out $3B, has waterfront land to sell

Port Authority, out $3B, has waterfront land to sell
TRD's Erik Enguist and Port Authority's Rick Cotton

Can the Port Authority bring NYC back? Tune in to TRD Talks Wednesday

Can the Port Authority bring NYC back? Tune in to TRD Talks Wednesday
Douglas Durst (Getty)

Douglas Durst tapped to be next REBNY chair

Douglas Durst tapped to be next REBNY chair
Douglas Durst and a rendering of the project (Getty, DRWC)

Durst’s $2B Philly waterfront redevelopment project approved

Durst’s $2B Philly waterfront redevelopment project approved
Port Authority Bus Terminal and AECOM CEO Troy Rudd (Roger Rowlett via Wikipedia; AECOM)

“Worst place on earth” may be buried underground

“Worst place on earth” may be buried underground
A photo illustration of Douglas Durst (iStock)

Mayor grants Durst Org its Astoria ferry wish

Mayor grants Durst Org its Astoria ferry wish
Anna Wintour of Condé Nast, One World Trade Center and Douglas Durst (Wintour by Dia Dipasupil/Getty Images; 1WTC via iStock; Durst by Patrick McMullan via Getty Images)

Condé Nast wants out at 1WTC. Durst may not be OK with that

Condé Nast wants out at 1WTC. Durst may not be OK with that
Robert Durst (Photo by Alex Gallardo-Pool/Getty Images)

Pandemic pushes back Robert Durst murder trial yet again

Pandemic pushes back Robert Durst murder trial yet again
arrow_forward_ios

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

Loading...