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"The Market's Not There" - One World Trade Center Lowers Asking Rents By 10%
With the housing purchase market for everyone but the wealthiest stagnating (confirmed by today's sliding "plans to buy a home" indicator), forcing Americans to scramble for rental properties and pushing residential asking rents to fresh record high quarter after quarter, the same can not be said for the commercial sector. In fact quite the opposite: according to the WSJ the owners of the towering 3.1 million square foot One World Trade Center, which at last check was 55% leased, have been forced to cut asking rents by 10% from 75% to $69. Why? "The market's not there," said Mr. Durst, whose Durst Organization bought a stake in the tower from the Port Authority in mid-2011. "When we started in 2011, everybody expected the economy to take off, and obviously that hasn't happened."
As WSJ reports, things are not going well for One World Trade Center...
No private office tenant has signed a lease at One World Trade Center in nearly three years. The 3.1-million-square-foot skyscraper, formerly named the Freedom Tower, is 55% leased.
The owner—a venture of developer Douglas Durst and the Port Authority of New York and New Jersey—is cutting asking rents nearly 10% to $69 a square foot for larger tenants on the building's middle floors, down from $75 a square foot, Mr. Durst said in an interview Friday.
The reason appears to be a total lack of real demand despite all the mal-investment -driving indicators of economic health that a trillion dollars here and there can create...
"The market's not there," said Mr. Durst, whose Durst Organization bought a stake in the tower from the Port Authority in mid-2011. "When we started in 2011, everybody expected the economy to take off, and obviously that hasn't happened."
"We have a lot of people looking at the space, but because of the asking rent, we are not able to really put anything over the finish line," Mr. Durst said.
...
But leasing has been slow. One World Trade has one major private tenant, Condé Nast, which took about 1 million square feet in 2011. Meanwhile, 4 World Trade is 51% leased to two government agencies. Mr. Silverstein has been asking in the $70s and $80s a square foot, comparable to the rents at One World Trade, before the latest price cut.
If you build it - they will come... unless the entire recovery is a mirage... in whch case you roll your debt once again and keep your fingers crossed...
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Gosh, that hasn't happened?
Apparently, the purpose of the bailouts was to sell books and salvage Tim Geithner's reputation.
Meanwhile, is anyone planning to visit the 9-11 Museum gift shop?
When the game is near the end, rolling over debt is the last option. Go Fed! Print us into hell.
I want to work in the big bulls eye!
I noticed on the recent ZH post about "Larget Structures" that One WTC boasted the highest per sq/ft build cost out of anything listed at over $15,000/sq-mtr
http://www.zerohedge.com/news/2014-05-26/worlds-tallest-deepest-longest-...
Babading is right, big bullseye. So its not surprising that there should be a discount in rental rates there just based on the fact that its pretty dangerous to work in that building....that is not airplane proof, poor lost souls roaming the building, and probably made of cheap low quality building material and iron ore from china.
The NYC office rental market has likely softened for the same reason home prices fell in NYC in March (while rising in other cities): In March, POTUS expressed his deep concern about prospect of nuke detonation in Manhattan.
http://www.nydailynews.com/news/politics/obama-warns-russia-ukraine-adva...
Public officials made similar CYA warnings prior to 9/11. Such warnings should be taken seriously.
Yeah, but can Snake Pliskin land a glider on top of it? I think NOT.
"The market's not there"
This would be a good time to open up section 8 housing at the WTC.
"the owners have been forced to cut asking rents"
pull it
I think One World Trade Center is probably the safest commercial building to work in. The Feds wouldn't hit the same target twice. Not their style.
The next one will be out west somewhere.
Actually, they did hit it twice.
it was a "crash two jets demolish three buildings" one time special offer.
Mr. Cheney was going to lease a whole floor but that pesky Pentagon kid appeared in his nightmares
"Specialist Schlotsky." Who knew?
I wonder how many people thinking about leasing space there also think about the "bulls eye" thing too?
This might be something TPTB didn't consider when they ...uhhhh... let's just say "used unorthodox methods" to clear that space for this fancy new building.
Could that be what 9/11 really was? That and shutting down an investigation into $2 trillion missing from the five-sided building? And greasing the skids for a fast track Patriot Act? And invading Iraq? And Afghanistan? And stealing a bunch of gold? And no telling what else they had planned?
All in one "operation"? Pretty neat huh?
....have been forced to cut asking rents by 10% from 75% to $69.
huh?
Do I need to solve for "X" or something?
What is this "market" they speak of????
Get Obammy on the phone and conference Ol Yellen in and get some government leases wiped into shape, I'm sure this bloated .gov workforce needs nice new shiny office space in NY!!
Matter of fact, screw the 10% discount, lets pay 20% over, that should get the "animal spirits" working, right Uncle Ben??
"Meanwhile, is anyone planning to visit the 9-11 Museum gift shop?"
Why yes, I plan to buy a piece of the towers' steel frame as a souvenir.
/s
Maybe it was built by the same firm as WTC7, and this time with guidance from NIST?
That could be hurting rents....
As long as Malaysian Airlines flight 370 remains missing, rents will remain low.
But , the big question remains. Is it Plane proof? Can it sustain the impact of a jet liner?
I'd be more concerned if it could survive a controlled demolition ;-)
Somehow i doubt it...
The original WTC was drone Boeing jet proof but not daisy chained RDX implosion proof.
http://911research.wtc7.net/mirrors/guardian2/wtc/nova.htm
That damn building has a big ole target on it, I wouldn't rent that mofo for free haha
Fill the entire building with Federal Government employees!!!
So I can get stuck with paying the outrageous rents?
The whole idea of that building was a failure fromt he first. They should have just allowed th emarket to dictate what should be built (think 40-60 story). The rents would have been lower, occupancy higher and the whole thing more profitable that that stupid government extravagance.
Thats a bit harsh. What about moving the contents of the White House, Congress and the Execs of all the Banks there instead
They have a Muslim praying Centering right nearby it's like asking for trouble for anyone who wants to rent in that place.
I guess that people haven't heard of this thingy called the internet. Overpriced office space is soooo 20th century. I wouldn't worry to much, I'm sure there will be some sort of subsidy for the interested parties.
If the going gets tough, One WTC can always be repurposed as an aircraft hangar. Again.
To some ..they will never move in there again.....jus saying......
Please, implying that there is a "market" would imply that there is a mechanism for price discovery. There isn't, so just stop it already.
Rents dropping at free-fall speed...
Lol Good one
I see what you did there +1
The economy would sure pick up if someone flew a jet into the building. Oh, wait, that event was followed by a recession. Fuck Krugman and his broken window bullshit.
Look at that wonderfully planned sale off in vol. Watching the inverse ETF's whose underlying link is the VIX, some strange shit is going on.
"When we started in 2011, everybody expected the economy to take off, and obviously that hasn't happened."
LOL, "everybody", as in, "no one could have seen this coming"
Excellent choice of words Mr agstacks.
Richard Heinberg has some pretty compelling arguements in his book "Peak Everything" but obviously we haven't reached, peak numbnuts..... he missed that one
this has nothing to do with the market. No one wants to work in that building. as the poster said above. it has a giant bullseye on it as far as anyone in NYC is concerned. i would flat out refuse to work there, and forget about the higher up floors.
Why didnt they target the lower floors? Seems like more chance of the building coming down
what difference does it make!
ask anyone in NYC if they would like to work in that building. nobody does. thats the bottom line.
If you're on a higher floor, just put a parachute in your office.
what that demonstrates is peoples lack faith in our govt protecting us from future terrorist attack
what that demonstrates is peoples lack faith in our govt protecting us from future government attack
There fixed that for you.
what that demonstrates is peoples' lack of faith in our gubmint protecting us from presently ongoing and escalating gubmint attack
there....
much obliged
No way.
All the real trading floors are in midtown and across the Hudson.
Fuck that building.
Sheeit, it looks like a headstone. I saw a story about howling and wailing coming from it, ghosts are blowing it like flies on a garbage can. If I took a job in there I'd show up every day with a fireman's ax, an O2 bottle and a parafoil to escape the next death list.
The architect's name was Evo Shandor. I found it in Tobin's Spirit Guide. He was also known for perforforming a lot of unnecesary surgeries and starting a secret society in the 1920s
They tried that the first time. As unbelievable as it sounds .gov learned from their mistakes.
A bunch of electrochemical sparks inside a calcium cavity that goes by the name of Marine Le Pen has this to say: “We are witnessing the total rejection of the system,” she told Le Monde on Monday. “This is a kind of patriotic revolution” pitting the FN against the two main political parties, the Socialists and the opposition centre-Right UMP.
“The split is now between ‘nationals and globalists’,” she claimed.
My comments: Fuck You Goldman Sachs
Always was that.
Or more appropriately the ; nationalists vs. the collectivists.
Strange , I was taught that in history class more years ago than I care too remember.
Don't confuse the neoliberals with the Third International. Aynie Girl was barking about public bureaucracy, not oligarchic monopoly. But, true, patriotism to a nation tends to crowd out patriotism to a financial elite.
"A bunch of electrochemical sparks inside a calcium cavity"...Love it!
If Lucky Larry Silverstein has bought massive insurance on this building, rents have a lot farther to fall - perhaps down to ground zero.
PULL IT!
Don't worry One World Trade Center will soon be odin vsemirnyy torgovyy tsentr
I used to work in a 45 story building in midtown manhattan. By 2009, it had only 2 floors occupied by 3 (non profit) tenants. We eventually moved to a super luxurious building that we shouldn't have been able to afford.
There are a lot of these buildings that look good because they keep window washers and doormen employed but have absolutely nothing going on inside
I don't understand this reluctance to sign up. No way the new and improved WTC could become a target a third time.
I was thinking the towers beautiful window pane would look even better with a fake russian missile traveling through it
Does renting space come with free parachutes, or is it break glass for emergency only option.
Can the building provide a shorted Airline Meter... if you see it go up for no reason...time to take a few days off...
Maybe if everyone didn't believe Washington D.C. has a track record of bombing the place he wouldn't have had to lower the rents.
Maybe they could give some kind of discount. You get 50% off the first year if one of your loved ones died on 9/11.
People should jump on that deal, for the next attack will probably involve more than three collapsed buildings anyway. If you have to be located in that area, why would it matter anymore? The whole region will be dust in a worst case scenario.
In the 1930s, people called the Empire State Building the "Empty State Building." To fill up the original World Trade Center buildings in 1973, the Port Authority leased large amounts of floor space in One World Trade Center and New York State took out 20 year leases at about $12 a square foot for 40 floors of space in Two World Trade Center. In 1985, Governor Mario Cuomo took his son Andy's advice and moved the state offices out to worst office space in the outer boroughs for rents of $20 or more a square foot, sometimes paying triple the market rate for office space owned or controlled by Cuomo's political cronies. New York State's Workers' Compensation Board and Housing and Community Renewal offices were paying skyhigh rents for space at the Gertz Building in Jamaica, Queens while the building's owner, Mel Lazar, was serving a prison sentence for his involvement in the NYC Parking Violation Bureau scandal. The asbestos contaminated debris illegally stored in the Gertz building basement came for free.
"Step right up people and be the first on your block to pay out the ass to sit in the bulls-eye of al qaeda's next dartboard!"
Amazing that it took so long to print that fucking building.
The troofers evidently didn't like your reference to al q there, sonny... Touchy lot aren't they?
"mal-investment"
"...unless the entire recovery is a mirage"
Where did the currency come from that created the products that cannot find demand? Did it originate from the result of productive work or was it conjured to impersonate that it came from productive work?
Mal-Investment is balderdash. The tyranny of modern economics creates non-sense words to aid in their deception. Understanding the difference between money (productive work) and counterfeit (the impersonation of work), is knowing that "mal-investment" is a reverse-pejorative; It means you've been had, bamboozled, lied, cheated and thieved. Follow the counterfeit and you will find your thieves.
But Mr. Durst said he doesn't believe safety concerns are an issue. "We really have not seen that," he said, calling it "the safest building in the U.S."
Mossad guys will test that soon, keep watching..
I think it has something to do with Jewish Lightning...
Potential tenants would feel a lot safer if JP Morgan used the top floor as their headquarters. There's no way the government would let oligarchs die in a fire or terrorist attack.
My gawd, Spungo; I think you've hit on something here.
Top floor; Federal Reserve Bank
Next floor down: Bankster Brass from the Big Four Banks.
Next floor down all the way to ground floor: Relocate the capital back to NYC.
To be effective, the bankers would have to be there 24/7/365. And that would be just like prison.
Oh, wait...
I worked a private equity event in NYC in 2002. It was centered around real-estate (REITs mostly)... got to meet Sam Zell (before I even knew who he was...). Anyway during the conference the subject of the WTC came up...mostly questions of why the twin towers were not being replaced. The answer was the space (even back then) was not commercially viable as the demand was not there. The twin towers held a lot of government office space because it could not be commercially leased...and even before 9/11 there were issues with empty space in the complex.
Fast forward 12 years...things have only gotten worse.
Sure sign me up. I will take the entire 13th floor.
Every office comes with a standard Vulcan cannon, and when they test it monthly you can keep the brass.
I wonder if the empty space has anything to do with NYC being an anti-business shit hole that people are fleeing.
http://nypost.com/2014/01/24/cuomos-hype-vs-new-yorks-reality/
You mean the bankers didn't rent the top half to make an awesome pent-house? I thought for sure thats what they were building it for. . . I thought they even added a private elevator for all the hookers and coke dealers.
Why would I take office space in a building that will be AQ Target Numero Uno? Its risky enough that buildings collapse by themselves...
As long as we make nice with the House of Saud, we've got nothing to fear from their AQ employees. Our Dark Government will be able to hire them for jobs like Lybia and Syria.
RE: "Everybody expected the economy was going to take off": What was he smoking?!
Convert them to condos. Everyone wants a condo.
How valuable is having an address in this building? Perhaps the anti business environment of the state and city is too great to overpay for space. NJ looks better on paper unless you need the illusion of being the it company in this tower.
Its still not any closer to midtown...
We stand on the precipice
Somewhere in the mists of ancient Internet history, I'm on the record as saying this monstrosity shouldn't be built, because there was megaovercapacity in Manhattan office space to begin with, and no one in their right mind would want to work in the world's top false flag, erm I mean terrorist, target.
LOL...that's hilarious. They should have built a fucking park there, but they're just greaseball whores and vermin, so they did they only thing they know how to do: SUCK THE GIANT MONEY COCK. Hey, freedom ain't free, right? LOLOLOLOLOL...
How bout this, you only pay if everyones still alive at the end of the lease
They need a glass deck viewing platform to attract more "dark tourism" tickets can be sold in the 9-11 museum.
wonder if lucky larry the dumpster rat will be having his daily breakfast at the top floor restaurant by the way someone ? know said they say an ?sraeli moving firm based in Jersey moving someone in the other day just sayin
If I was paid to work in that building, I'd wear a parachute on my back everyday.
"When we started in 2011, everybody expected the economy to take off, and obviously that hasn't happened."
QE was designed to benefit Wall Street, not Main Street.
Airplane insurance policy 10% increase in rental minus 10% discount. Call Flo at Progressive or Grandpa at Geico.
You can Jew yourself down to the right price.
Atlas is shrugging
Telemachus is sneezing.
$1200 a sqft is a bit pricey for a homing beacon, no?
lol of course the government can afford it..as allways..
If your taxpayers cant afford food for the day you can always print more money.
i was saying to larry silverstein last week gee larry dontes sweat it.
you see he kept droaning on and on about rent this and rent that getting so money mathmatical that i thought my head would explode.
i said larry you got insurance paid 2 3 or 4 times over for the one 911 job your made fella.
he would not listen he said these rents are not fuckin workin out this is a fucked up situation i need more money.
i said it anint gonna happen forget about it.
the cunt only went and turned around and said tony maybe i could what if i pull it again.
i said fuck you you satanic jewish cocksucker i am outta here.
SHHH! You've heard of outsourcing and industry going overseas? What do you think of sevicing and hedging of derivatives?
What do you think of banks moving headquarters groups? Shhhh! Don't tell the idiot new Mayor of NY! Heavy Industry production is gone and did it years ago. We might keep the physical Derivatives here depending on the treatment. But why not move the servicing and hedging? WOW! But, keep it quiet Afterall we might want bailed out again!
Same ole story...twin towers also were largely unoccupied
http://letsrollforums.com/press-release-world-trade-t24256.html?s=e7f179...
The building, like the earlier ones, is a badge of honor to attack. They tried TWICE before, just because it's the symbol of financial power and modernist in the Western World. It's all symbolic and why on earth, after 9-11, would anyone want to work in a huge office tower nevermind the replacement building is beyond me.
I bet that's one building where the rental space gets cheaper as the floors go up.
Apart from the obviously flight risk from a terrorist/govt attack. I'd be more concerned with the a plane flying into this building by accident. Who's bright idea was it to make the tallest building out of the same camoflauge armour that predator uses.
Perhaps Target could be offered a discount to move their corporate headquarters into the building. They could paint their logo on a 100 foot banner and hang it outside.