NEW YORK CITY—Just when the ownership of One World Trade Centerdecided to make a major concession in order to wootenants—after going nearly threeyears without signing a single lease for a private officetenant—the building has landeda new space user.

|

The Durst Organization has signed KiDS Creative, LLC toa15-year, 34,775-square-foot, full-floorlease on the 87th floor of thebuilding. Headed byfounder and chief creative director Pascal Dangin, KiDS is an adagency that offers a full range of advertising and brand strategyservices. The floor's occupants also will include the photographyand film departments of Dangin's post-production house, Box,including a state-of-the-art theatre for private screenings.

|

The lease comes just asDurst—in conjunction with itsjoint venture partner, the Port Authority of New York and NewJersey—decided toreduce asking rents on thelower floors in order to stimulate leasing. The 3.1 million-square-foot skyscraper's landlordis cutting asking rents nearly 10% to $69 a square foot for largertenants on the building's middle floors, down from $75 a squarefoot, according to the WallStreet Journal.

|

"The market's not there,” says Douglas Durst, whosecompany bought a stake in the tower from the Port Authority inmid-2011. "When we started in 2011, everybody expected the economyto take off, and obviously that hasn't happened. We have a lot ofpeople looking at the space, but because of the asking rent, we arenot able to really put anything over the finish line.”

|

The building's competitive set is charging lower rents,creating a difficult climate in which to attract tenants, a Durstspokesman tells GlobeSt.com. “The middle floors in the building arecompeting with the rest of the downtown market which is doing dealsin the low to mid $50s. The upper floors are unique and wecontinue to ask between $80 and $100 a square footthere."

|

Meanwhile, Durst executive Eric Engelhardt, director of One World TradeCenter leasing, says KiDS has nabbed an efficientspace. “KiDS'87th-floor settingwill be a highly coveted work environment that combines unmatchedviews with highly flexible and adaptivespace. The agency's towerfloor tenancy serves as an ideal complement to Condé Nast. Weexpect to sign more leases with companies in the creative, mediaand tech world.”

|

“Pascal Dangin instantly recognized the value of 360-degreeviews witnessed through floor-to-ceiling glass,” adds Tara Stacom,executive vice chairman of Cushman & Wakefield, who heads theleasing team for One World Trade Center, which alsoincludes Alan Stein, James Searland Justin Royce, along with Jodi Pulice of JRT Realty."He knew this extraordinarylight would elevate his team's creative spirit and productivity.KiDS focused exclusively on the 87th floor, among the world's highest officespaces."

|

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

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.