The Port Authority of New York and New Jersey is looking to reduce its Manhattan office footprint by subleasing just over 57,000 square feet at 80 Pine Street in the Financial District.
The in-progress deal at the Rudin Management-owned building would need approval from the agency’s board of commissioners, Crain’s reported. The space, which covers the 1 million-square-foot, 39-story tower’s entire seventh floor, will house the agency’s staff working on projects such as the World Trade Center redevelopment and the Port Authority Bus terminal.
The Port Authority currently occupies just under 75,000 square feet at 115 Broadway, and needs less space now that the WTC redevelopment is winding down, according to Crain’s. The agency said the space at 80 Pine will cost $8.2 million over the life of the five-year sublease, equating to an annual rent of about $30 per square foot. The sublessor, Transatlantic Reinsurance Company, will offer the agency further incentives to take the space, according to the publication.
The Port Authority has long been talking about disposing of some of its non-core real estate assets in order to fund infrastructure projects. The Real Deal recently explored what properties the agency might seek to bring to market. [Crain’s] — Miriam Hall