Conde Nast has spent years trying to sublease its massive footprint at 1 World Trade Center. It may be getting a big assist courtesy of a renovation taking place at another property.
Bank of New York Mellon is in talks to sublease 200,000 square feet from the media publisher at the Financial District tower, the Commercial Observer reported. The negotiations have been taking place for months, but have yet to cross the finish line and could still collapse.
BNY is seeking to sublease four floors from Conde Nast as it renovates its global headquarters at 240 Greenwich Street. The renovation project is lengthy enough that BNY is seeking a four-year sublease, though that fails to cover the duration of the Conde Nast lease, which goes through 2039.
JLL is representing BNY in sublease negotiations, while CBRE’s Scott Gottlieb is representing Conde Nast.
The Durst Organization and the Port Authority of New York and New Jersey own the property at 1 WTC. Conde Nast holds 1.2 million square feet in the 104-story, 3.1 million-square-foot building, and started subleasing almost immediately to other tenants after moving in.
Since 2019, more than 230,000 square feet have been claimed by subtenants. A year ago, financial advisory firm Kroll took 48,000 square feet from the publishing giant on a 10-year deal, where the asking rent was $59 per square foot.
Conde Nast publicly battled with its landlords at one point, withholding $2.4 million in rent after the onset of the pandemic as it looked to renegotiate its lease. Conde Nast ultimately paid the full amount owed.
The publisher has competition within its own building to find tenants or subtenants. This month, Durst made the 89th and 90th floors available to lease, the first time they’re being marketed to office tenants.
The landlord is hoping to garner rents in the ballpark of $160 per square foot.
— Holden Walter-Warner
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BNY Mellon to ditch its 350K sf Brookfield Place office after just 3 years
