December 11, 2015
To make way for the construction of 2 World Trade Center in Manhattan, the Port Authority of New York and New Jersey has agreed to offer financial concessions to developer Larry Silverstein. Silverstein intends to lease half of the space in the new tower (1.5 million square feet) to Rupert Murdochs’ News Corp and 20th Century Fox.
The agency says that the success of the project is “contingent on some public-sector support,” which deviates from the original plan that once nixed public-sector support. The tower is expected to generate a minimum of $500 million in revenue for the Port Authority. Silverstein will support the tenants with $19 million, with $15 million in tax credits coming from the state.
Conde Nast already occupies 1 WTC and Time agreed to lease 700,000 SF at Brookfield Place. This deal solidifies the Financial District as a major media hub.