NEW YORK CITY-Deloitte has committed to remaining Downtown by completing a renewal for 400,000 square feet at Brookfield Properties’ 4 World Financial Center, the New York Post reported Wednesday. A Brookfield spokeswoman tells GlobeSt.com the company has no comment.
The accounting firm has been subleasing some of Merrill Lynch’s space at 2 World Financial Center, part of a total of 4.6 million square feet of Merrill leases at the WFC that are set to expire in 2013. The 4 WFC deal gives Deloitte the option to expand by up to 230,000 square feet, says the Post.
Earlier this month, Bloomberg reported that Deloitte and Brookfield were in talks on the 4 WFC space. The deal could help offset the negative perception created as big financial firms, including AIG and Goldman Sachs, have given back big blocks of space in Lower Manhattan. Through a spokesman, the Alliance for Downtown New York declined Wednesday to comment on the Post report.
News of the deal occurs amid two other positive developments Downtown. In a new report, the Downtown Alliance says the number of hotels below Chambers Street has tripled since 9/11, while the number of rooms has increased by 60%.
These include three that have already opened this year: the 169-key World Center Hotel at 144 Washington St., the 112-key Holiday Inn Express at 126 Water St. and the 253-key Andaz Hyatt Wall Street at 75 Wall. The 220-room W New York—Downtown & Residences is scheduled to open later this summer at 123 Washington St.
The Wall Street Journal reported Wednesday that the first deal for those residences closed Friday, as an unnamed Italian investor paid about $4 million for two apartments on the 58-story tower’s 42nd floor. The Moinian Group developed the property on the site of a 10-story building that was heavily damaged on 9/11.
With the opening of the W, Lower Manhattan will have 16 hotels, for a total of 3,693 keys. Additionally, three hotels with a combined 680 keys are under construction, which will bring the area’s total to more than 4,000 rooms, the Downtown Alliance says.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
