25 Years After 9/11
Years after 9/11, rental prices for large spaces in the World Trade Center are fairly similar to those on Park Street and Sixth Avenue, which are key areas in Midtown, according to a recent investigation.
When Moody’s relocates from 7th World Trade Center in late 2027, Larry Silverstein anticipates rental rates reaching up to $140 per square foot for 700,000 square feet, as noted by Jeremy Moss, the landlord’s executive vice president of leasing.
Moss described Moody’s availability as an “excellent opportunity,” adding that “rents have jumped 30% since the pandemic.”
While the details of Moody’s current lease weren’t disclosed, it’s interesting to note that when the deal was signed two decades ago, the rental rate for most spaces at 7 WTC started in the mid-$50s per square foot.
It’s worth mentioning that average downtown office rents are at least 25% less than those in Midtown, so even visiting figures like Britain’s King Charles and Queen Camilla would likely be surprised that “more than a dozen leases signed in the past year exceeded $100 a foot” at Silverstein’s 3, 4, and 7 World Trade Centers, Moss added.
Meanwhile, the Durst Organization, which co-owns WTC 1 with the Port Authority, is asking $160 per square foot for a penthouse on the second floor of the top tower. Prices for lower levels run from the mid-$80s to the $90s.
This price increase comes during a vital time for the 16-acre site, which faced significant opposition regarding its commercial redevelopment from skeptics across different sectors. Construction for the long-awaited second WTC has begun, intended to serve as the new headquarters for American Express. The ambitious skyscraper, designed by Norman Foster, is set to start rising early next year.
In fact, existing office towers, including 1 WTC, have recently surpassed a 95% occupancy rate, according to brokers and the Downtown Alliance, while average occupancy in Manhattan stands around 85%, with downtown averaging 80%.
Mary Ann Tye, a notable CBRE superbroker who facilitated Condé Nast’s lease at 1 WTC and currently represents Silverstein at 3 WTC and 7 WTC, highlighted the ideal combination of public transit and modern office spaces that businesses seek. She pointed out that financial services, tech, and law firms are “growing and thriving in the trade center.”
For instance, law firm Freshfields Bruckhaus Deringer is set to expand by 43,000 square feet at WTC 3, increasing its total space to 268,000 square feet—this comes as a bit of a surprise since it was unreported before. At 1 WTC, Energy Capital Partners has enlarged its space to 70,425 square feet after initially leasing just over 6,000 square feet back in 2017.
Notable tenants at the trade center include Carta and Ameriprise at 1 WTC, Uber at 3 WTC, Spotify at 4 WTC, and Wilmer Hale at 7 WTC.
“The WTC symbolizes New York City’s resilience and ability to reinvigorate itself after such a tragic event,” remarked Mitchell L. Moss, a professor of urban policy and planning at NYU and a long-time supporter of the redevelopment efforts after 9/11.
He further noted, “This initiative has been pivotal in reshaping Lower Manhattan into a vibrant community, replete with workers and residents, and home to myriad media, technology, and financial service enterprises.”
