News Summary
The Bank of New York (BNY) has secured a sublease of 192,000 square feet from Condé Nast at One World Trade Center. This four-year arrangement comes amidst rising leasing activity in Lower Manhattan, which has seen an 87% increase in leasing during 2024. As BNY plans renovations at its headquarters, the commercial real estate market in the area is displaying signs of recovery post-pandemic, reflecting growing residential trends and reducing office space availability.
New York – The Bank of New York (BNY) has secured a sublease of 192,000 square feet from Condé Nast at One World Trade Center. This arrangement spans four floors and is intended for a four-year period while BNY undertakes renovations of their headquarters located at 240 Greenwich Avenue.
The deal was first reported in May and has now been officially confirmed. The timing of the sublease reflects a significant uptick in leasing activity in Lower Manhattan, which has shown remarkable resilience 24 years after the events of September 11, 2001.
According to a second-quarter summary released by the Downtown Alliance, Lower Manhattan experienced an 87% increase in leasing activity during the same period in 2024, marking the most robust figures since the onset of the COVID-19 pandemic. The availability rate of office space in the area has decreased for the sixth consecutive quarter, now sitting at 22.8%. This drop in availability includes the removal of 89,000 square feet from the market, which has been repurposed for residential use.
Data from CBRE indicates a total of 2.7 million square feet of downtown leasing has occurred so far this year, with over 870,000 square feet marking positive absorption—an encouraging sign for the recovery of the commercial real estate market in this region.
The residential community in Lower Manhattan has also significantly grown; the population below Chamber Street, including Battery Park City, has risen from just under 33,000 before 9/11 to approximately 70,000 today.
During its occupancy of the new subleased space, BNY will focus on upgrading their headquarters, which includes renovations to the lobby, facade, and the addition of new amenities. Current renovation permits cover various projects, such as constructing a bridge to a new elevator lobby for a rooftop terrace and enhancing HVAC systems to lower carbon emissions.
In this deal, BNY was represented by JLL, while Condé Nast was represented by CBRE’s Scott Gottlieb. The ownership of 1 World Trade Center is shared between The Durst Organization and the Port Authority of New York and New Jersey, both of whom were represented by Newmark during the transaction.
Condé Nast has occupied One World Trade Center since its grand opening in 2014, having originally leased 1.2 million square feet across 23 floors. In 2018, the company opted to consolidate its operations, seeking to market 350,000 square feet for sublease. Several firms, including Ambac Financial Group, Ennead Architects, and Kroll, have since taken advantage of subleases from Condé Nast.
In 2021, Condé Nast faced financial difficulties, withholding $2.4 million in rent as they negotiated new leasing terms. By August of the same year, they made a notable repayment of around $10 million in back rent owed from earlier that April.
The recent sublease agreement with BNY is indicative of a broader trend within Lower Manhattan’s real estate market as it continues to recover and adapt in the aftermath of the pandemic. The ongoing developments and shifts in leasing activity signal a positive outlook for the region’s commercial landscape, highlighting a return of confidence among businesses and potential new residents alike.
Deeper Dive: News & Info About This Topic
- New York Post
- Google Search: Bank of New York Conde Nast One World Trade
- Commercial Observer
- Wikipedia: One World Trade Center
- Voice of America
- Statista
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
