Condé Nast isn’t paying rent at 1WTC amid lease dispute

Publisher owes $2.4M for January rent

New York /
Feb.February 09, 2021 05:51 PM
Douglas Durst of the Durst Organization, Port Authority Executive Director Rick Cotton, and  Conde Nast CEO Roger Lynch. (Getty)

Douglas Durst of the Durst Organization, Port Authority Executive Director Rick Cotton, and Conde Nast CEO Roger Lynch. (Getty)

 

Condé Nast is taking its lease disagreement at One World Trade Center to the next level.

The magazine publisher, which leases 1.2 million square feet at the Financial District skyscraper, has not paid the $2.4 million it owes in rent for January, according to the Wall Street Journal.

The media company has reportedly been looking for a way out of its lease since the summer, and hopes to move to a smaller office in Midtown or New Jersey’s Gold Coast. But its landlords — the Port Authority of New York & New Jersey and the Durst Organization — aren’t prepared to let the company go so easily, especially considering its lease at the SOM-designed supertall extends through 2039.

“The Port Authority believes it has strong contractual rights to enforce full payment by Advance which it intends to assert,” a spokesperson for the agency told the Journal.

The pandemic has hammered both New York’s office market and media industry. Office landlords are dealing with record availability and low occupancy numbers, with a full recovery not expected until the Covid-19 vaccine is widely available.

And for publishers, the pandemic worsened the problem of declining advertising revenue. Many companies have been hit by layoffs, Condé Nast included.

Advance Publications, the parent company of Condé Nast, had already subleased 150,000 square feet at 1 WTC, and told the Journal that it “continues to be in discussions about bringing the lease in 1WTC into line with current market conditions and its ongoing needs at that location.”

The company moved into the tower at the end of 2014, leaving behind its former headquarters at the Durst Organization’s 4 Times Square, which was subsequently rebranded as One Five One. Last year, TikTok signed one of the city’s biggest pandemic-era office leases when it inked a deal for 232,000 square feet in the building.

[WSJ] — Amy Plitt





    Related Articles

    arrow_forward_ios
    270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
    Legendary Hampton Bays bar up for sale
    Legendary Hampton Bays bar up for sale
    Prologis Chairman and CEO Hamid Moghadam (Getty, Prologis)
    Industrial space “effectively sold out” amid leasing frenzy, Prologis says
    Industrial space “effectively sold out” amid leasing frenzy, Prologis says
    Starwood raises $10B for distressed real estate plays
    Starwood raises $10B for distressed real estate plays
    Starwood raises $10B for distressed real estate plays
    Aulder Capital CEO Jonah Bamberger and 162-164 East 82nd Street (Rosewood Realty Group, Slate Property Group)
    Two Upper East Side apartment buildings head to foreclosure sale
    Two Upper East Side apartment buildings head to foreclosure sale
    Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
    Private equity firm carves out 14K sf at Aurora’s Solar Carve building
    Private equity firm carves out 14K sf at Aurora’s Solar Carve building
    Resurrection! Work resumes on stalled Clinton Hill residential project
    Resurrection! Work resumes on stalled Clinton Hill residential project
    Resurrection! Work resumes on stalled Clinton Hill residential project
    CRE held up through the pandemic far better than most expected (iStock)
    How commercial real estate survived the pandemic
    How commercial real estate survived the pandemic
    Harbor Group grabs $558M in financing for Black Rock purchase
    Harbor Group grabs $558M in financing for Black Rock purchase
    Harbor Group grabs $558M in financing for Black Rock purchase
    arrow_forward_ios

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

    Loading...