The deal was based on a modified contract between the Port and the GSA. The federal government –an original tenant of the US Customs House Building, also known as Six World Trade Center – entered into an agreement for the construction of approximately 750,000 square feet and for the letting of the building by the GSA, for an initial 20-year term and 16, 5-year renewal options. According to June 28 meeting minutes from the Port, the current term of the Six World Trade Center lease extends through December 31, 2013, and in the aftermath of 9/11, the GSA waived its right to have the Six World Trade Center building rebuilt on its original site in exchange for the replacement of that space with a new leasehold at One World Trade Center. The current GSA lease represents the agreement upon replacement space, the Port says.

The announcement comes almost three months after Senator Chuck Schumer (D-NY) called upon the GSA to finalize the lease and reaffirm its commitment to Lower Manhattan. But according to a report in the New York Post, Rep. John Mica (R-FL), chairman of the House Transportation and Infrastructure Committee, allegedly held up the approval of the lease.

While the GSA lease pushes One World Trade Center to more than 50% leased, at the same time, its some 300,000-square-foot agreement is less than originally expected. In 2006, the Port Authority entered into a memorandum of understanding with the GSA “for its occupancy of approximately 645,000 rentable square feet in the Freedom Tower,” according to minutes from the Port’s Feb. 22, 2007 meeting.

Sources close to the deal say the reduction from the original amount of space anticipated is the result of the GSA reevaluating its space needs in New York City. In addition, the people said that the federal agency is also reducing its overall national space footprint and increasing the efficiency of its existing real estate needs.