Months after reports emerged of a sublease deal in the works, Condé Nast finally found a taker for 192,000 square feet at 1 World Trade Center.
The Bank of New York is subleasing the huge swath of space from the publishing giant at the Financial District tower, the New York Post reported. The bank plans to occupy the four floors for four years as it renovates its headquarters at 240 Greenwich Avenue.
Discussions over a possible sublease deal were reported by the Commercial Observer back in May. Further details about the financial arrangement were not disclosed.
JLL represented BNY in the sublease deal, while CBRE’s Scott Gottlieb represented the publisher. Newmark also gave building co-owners The Durst Organization and the Port Authority of New York and New Jersey a seat at the table.
Condé Nast will need to figure out a strategy for the space four years down the line, as its lease doesn’t expire until the end of the next decade. Condé leases 1.2 million square feet in the 104-story, 3.1 million-square-foot building, but started subleasing space almost immediately after moving in.
Since 2019, more than 230,000 square feet had been claimed by subtenants before this latest agreement. Last year, financial advisory firm Kroll leased 48,000 square feet from the publisher on a 10-year deal with an asking price of $59 per square foot.
Condé publicly fought with its landlords at one point, withholding $2.4 million in rent after the onset of the pandemic as it attempted to renegotiate its lease. It ultimately paid the amount owed in full.
In May, Durst made the 89th and 90th floors available to lease, the first time they’re being marketed to office tenants. The landlord is looking to capitalize on the sky-high floors and garner rents in the ballpark of $160 per square foot.
— Holden Walter-Warner
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