Condé Nast will put 350,000 square feet – a third of its space at One World Trade Center – on the sublease market as it consolidates its footprint in the building in order to cut costs.
The publishing giant will put seven of the 23 floors it occupies in the 104-story tower up for sublease, the New York Post reported.
It will take Condé Nast about 18 months to move and consolidate offices within the building, but no start date has been set.
“Since we are living here and renovating at the same time, the lessees will move in once our new floors are completed,” a spokesperson told the Post. “They say the NYC real estate market takes at least nine months, ergo the listing now.”
The Real Deal first reported in February that the publisher had hired a team at JLL to advise and market the space for sublet.
According to the Post, the company paid what is estimated to be in the area of $50 per square foot for the space when it inked a deal to move Downtown in 2014. Direct space at One World Trade Center is now asking an estimated $75 per square foot.
Sublet space, however, is often offered below-market compared to direct space, and would compete with availability landlord the Durst Organization and the Port Authority of New York and New Jersey has in the building.
The tower’s owners recently replaced a Cushman & Wakefield team led by Tara Stacom with one at Newmark Knight Frank helmed by David Falk as the tower’s leasing agent.
Condé’s space joins another large block of 300,000 square feet that Bank of New York Mellon put on the sublease market earlier this year at 225 Liberty Street at Brookfield Place. J. Crew is reportedly eyeing the space. [NYP] – Rich Bockmann