Real Estate Marketing & Beyond
Developers at New York City’s Ground Zero have put the construction of two new skyscrapers on hold, as they say they haven’t found enough new tenants to fill up the two office buildings.
One World Trade Center © stormray - Fotolia.com
Silverstein Properties told Associated Press that one of the buildings, known as Three World Trade Center, which was planned to soar 80 stories into the sky, will be halted at just seven stories unless they can find more tenants to move to the new construction.
Three World Trade Center was originally intended to be the third-tallest skyscraper in the new World Trade Center complex, which has cost the developers an estimated $11.7 billion. The scheduled completion date of the building is 2015, meaning the developer still has time to find new tenants.
However, Silverstein Properties say that if construction is halted at just seven stories, they will still be able to build the tower higher at a later date, if and when they can secure financing.
Two World Trade Center, which was planned to be 88-stories, has also been put on hold until more tenants can be found.
Associated Press reported that many New York companies are reluctant to invest in new offices at the moment, because of concerns about the poor economy. Instead, many are looking to renegotiate lower rents in their current premises, as five-year leases which were agreed before the housing crisis come up for renewal.
The final building in the complex, One World Trade Center, has reached its planned height at least. Once known as Freedom Tower, the building is now at 90 stories, but it too faced several hold ups in its construction. The building is currently 60% leased, according to the Port Authority’s Patrick Foye, who told the Associated Press that construction should be complete by the end of 2013.
