GSA Poised to Become Third Tenant of 1 World Trade Center

The Port of Authority of New York and New Jersey approved a plan for the U.S. General Services Administration to take five floors at 1 World Trade Center in lower Manhattan, making it the third tenant at the skyscraper.

The authority’s commissioners authorized the agency to agree to a 20-year lease with the GSA, with as many as four 15- year renewal options, according to a resolution adopted today. Total rent paid over the first 20 years would be $351.4 million.

“We made what we think is a very attractive deal,” Pat Foye, the Port Authority’s executive director, said after the agency’s board meeting.

A final agreement still needs to be signed. The 104-story tower would be 55 percent leased with the deal, agency officials said at today’s meeting. The 1,776-foot (541-meter) skyscraper, a centerpiece of the World Trade Center redevelopment, is scheduled to be completed by 2014.

The building’s main tenant is Conde Nast Publications Inc., which agreed last year to move its headquarters there from midtown Manhattan. Beijing Vantone Real Estate Co. (600246), a Chinese property firm, also has rented space. The Durst Organization, developers of 1 Bryant Park in Midtown, is overseeing leasing on behalf of the Port Authority as its partner in the project.

The GSA negotiates leases on behalf of federal agencies. It would take about 270,104 square feet (25,093 square meters) at the new skyscraper, according to the resolution. The U.S. Customs House was among the trade center’s original tenants, fully occupying the 750,000-square-foot 6 World Trade Center, one of the buildings destroyed on Sept. 11, 2001.

New Space

The federal agency waived its right to have 6 World Trade Center rebuilt in return for space in the new 1 World Trade Center, the authority said.

The GSA is “committed to finalizing the terms of our lease for space at 1 World Trade Center,” said Dan Cruz, the federal agency’s deputy press secretary, in an e-mail. “We continue to work closely with the Port Authority and the Durst Organization to negotiate a lease that will result in the best value for taxpayers, the federal government and the city of New York.”

The Port Authority has a number of potential tenants in the pipeline and rents have been escalating, Foye said.

“It’s indicative of the commercial success and progress that’s been made in leasing there,” he said.

To contact the reporters on this story: David M. Levitt in New York at dlevitt@bloomberg.net; Martin Braun in New York at mbraun6@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

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