More office space rental in the Financial District may be up for grabs after media-buying company GroupM reportedly reached a tentative agreement to move to 3 World Trade Center. According to a recent article in the Wall Street Journal, the company has signed a letter of intent with developer Larry Silverstein.
GroupM would lease 515,000 square feet in the third of the four towers expected to be built at the 16-acre site. The third tower is expected to be home to 2.5 million square feet of prime New York office space. Currently it is planned to have eight floors, but that could change if more tenants come on board.
Silverstein’s 72-story 4 World Trade Center is near completion and half leased. Real estate analysts believe he needed the GroupM agreement to secure the bank funding for 2 World Trade Center and 3 World Trade Center. If Silverman signs a tenant for at least 400,000 square feet and raises $300 million in additional funds, the city and state will chip in a $600 million subsidy package to help finance the third tower’s construction.
One World Trade Center, which is being built by the Port Authority of New York and New Jersey, is currently under construction and expected to open in 2015. More than half of its 3 million square feet of office space has been leased, with Condė Nast as the anchor tenant. The publishing company signed a lease agreement for a million square feet of office space in 2011.