NEW YORK CITY—The first tenant who inked a lease at 1 World Trade Center is looking to drastically shrink its commitment at the iconic Downtown office tower, according to Crain's New York Business.
Vantone Industrial wants to downsize its lease by 85% to take only a single floor in the 104-story tower for a total of 31,344 square feet, down from 202,000 square feet. The Port Authority of New York and New Jersey, which owns the tower along with the Durst Organization, is expected to vote on the matter at its board meeting today.
This is not the first time the Beijing-based firm has attempted to shrink its Lower Manhattan space, Crain's notes. Last year Vantone asked to roughly half its original commitmentto about 100,000 square feet at 1 WTC.
The company intended to create what it called a "China Center,” a facility with conference and meeting rooms as well as amenities such as a restaurant and spa. The space was meant to serve as a hub for Asia-based companies to conduct business in the city, hold meetings and entertain clients. Originally planned as a big outpost to be used by hundreds of organizations at one time, its lofty goals have been scaled back as China's economy stumbles
"China Center's business model changed," the Durst Organization says. "When a tenant's circumstances are altered, we seek a solution that keeps them in the building." A spokesman adds that the center's facilities and restaurant will be open to other 1 WTC tenants. Cushman & Wakefield, which handles leasing at the 3.1 million-square-foot tower—led by executive vice chairman Tara Stacom—declined to comment to GlobeSt.com.
If the Port Authority approves Vantone's request, the company will take the entire 89th floor for about $100 per square foot. That's a big adjustment from the initial lease for floors 64 to 69, where asking rents are in the $70s per square foot. In addition, Vantone likely will owe the Port Authority and Durst a termination fee on the space it releases. The amount of the penalty payment could not be ascertained at press time.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
