Country's Tallest Building Falls Short on Rental Rates
One World Trade Center rents have been cut by as much as 10 percent as office leasing activity is still slow in what was once anticipated to be a very popular location for New York City tenants.
A slow economic recovery has created a market that isn’t strong enough for One WTC to demand top-dollar rents. Instead, the building—which boasts the title of tallest building in America and already counts Conde Nast, Morgan Stanley, and Bank of America as tenants—has had to settle for being only 55 percent leased.
Some CRE experts aren’t surprised, however, having predicted as far back as 2011 that One WTC would have to eventually settle for lower asking rents. It’s been speculated that the hefty initial rent demands intimidated some prospective tenants.
Things may look up soon, though. Experts have also noted that demand for so-called “trophy buildings”—those with luxury amenities and unique features—is on the rise. Media and tech companies’ increased interest in setting up shop in New York City may ultimately fill in the gaps at One WTC.
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