NEW YORK | 3WTC (175 Greenwich Street) | 357m | 1170ft | 80 fl | U/C

[oli83]

Originally Posted by DinoVabec

Exterior columns will go into those circles.

Looks like the first three went in today..

edit: 600West218, you were faster

[Eric Offereins]

It is low contrast, but they are visible on the webcam:

[DinoVabec]

Great!

[Uaarkson]

Regardless of when it's built, with all of the progress so far I don't see anyone getting freaked about it never getting built.

[spectre000]

Originally Posted by Uaarkson

Regardless of when it's built, with all of the progress so far I don't see anyone getting freaked about it never getting built.

Right on. They've already probably sunk in $2-300 million for the underground levels and podium. No sense in stopping with just a half dozen floors.

Same goes for 2WTC as well.

[spectre000]

New Hitch In Ground Zero Plans: No Takers

By ELIOT BROWN

For years, rebuilding of the World Trade Center site was held up by construction delays and fights between government agencies, insurers and a developer.

Now the problem is a lack of tenants.

While two office buildings are well underway at Ground Zero, construction of a third tower, 3 World Trade Center, is stalled at eight stories, well shy of the 80 floors planned. The reason: its developer, Silverstein Properties Inc, the company run by Larry Silverstein, hasn't been able to find a tenant, and he can't build any higher without one, based on a two-year-old deal with government agencies.

When Mr. Silverstein started construction in mid-2010 on the building, then-expected to have 2.5 million square feet of space, he had hoped he would be able to find a tenant by now and keep building to the tower's top. But cement stopped pouring at the 8th floor in the past few weeks..."

"...Mr. Silverstein hopes he can resume the upward momentum on 3 World Trade Center soon. His neighboring tower at the site, 4 World Trade Center, is due for completion by late 2013 and is about half-leased by government agencies. The signature tower on the site, One World Trade Center, which is being built by the Port Authority of New York and New Jersey, is 55% leased, mostly to publisher Condé Nast. Once called the Freedom Tower, it is due for completion in early 2014..."

"...So far in 2012, 40% of Manhattan leases tracked by real-estate brokerage firm Cushman & Wakefield Inc. have been renewals of existing space, more than double the proportion in 2007.

To be sure, large companies such as Time Warner Inc. are searching for Manhattan space, and many companies prefer new towers to old, which could put 3 World Trade and the other towers at the site well-positioned once the economy improves and companies are ready to move.

Mr. Silverstein is confident he will eventually line up enough tenants to resume building. "We are 100% committed to building 3 World Trade Center to the top as quickly as possible," said Janno Lieber, Mr. Silverstein's deputy who oversees the World Trade Center development. "We are marketing the tower widely and remain optimistic that we can meet our preleasing targets over the next year."

Mr. Lieber said a slower-than-anticipated recovery has made for a more-challenging environment, and "the predominant factor" affecting all new projects is that companies are increasingly choosing to renew their leases instead of move.

Mr. Silverstein, 81 years old, has been a fixture at the World Trade Center site since weeks before the towers were attacked on Sept. 11, 2001. He won the long-term lease to control the twin towers. In better times, he and the Port Authority imagined four towers would rise together. The economic downturn threw cold water on that vision.

UBS AG was in advanced talks to be the main tenant in 3 World Trade until it abruptly pulled out of discussions following a rough second quarter in 2011, Mr. Silverstein has said. Last summer, the bank opted to keep many operations in Stamford, Conn., saying at the time it was pleased to stay there.

Other companies that had discussions with Mr. Silverstein's firm but have opted against taking space at the tower include investment bank Jefferies Group Inc., JEF, Viacom, DTV and Citigroup Inc., according to multiple real-estate executives with knowledge of the talks. Viacom and Citigroup recently signed large lease renewals to stay in place. Representatives of Viacom and Jefferies didn't respond to requests for comment, and a spokesperson for Citigroup declined to comment.

Just to the west of the World Trade Center site, Brookfield Office Properties Inc. BPO hasn't yet been able to lure large tenants like Viacom to fill more than three million square feet at the World Financial Center set to become vacant late next year, Brookfield has said.

The space, which houses part of Bank of America Merrill Lynch, is as large as the entire Empire State Building. The Bank of America unit is keeping a smaller presence in the property, and cut down its needs there after its acquisition of Merrill Lynch & Co..."

"...As for 3 World Trade Center, Mr. Silverstein needs a tenant of at least 400,000 square feet to continue, based on a 2010 subsidy deal with government agencies. Without it, the first eight floors would be completed, perhaps to hold retail."

[Valkyre]

Based on the last updates we are getting, I wouldnt say Tower 3 is "stalled", I dont know how reliable the guy on the article is, or how old that article is actually but it doesnt quite add up.

[oli83]

The article is from yesterday. I hope it stops all these comments like "I have a feeling that this tower will rise without halt.." and we stay with the facts

[Eric Offereins]

I agree.

So far in 2012, 40% of Manhattan leases tracked by real-estate brokerage firm Cushman & Wakefield Inc. have been renewals of existing space, more than double the proportion in 2007.

This does not surpise me, given the uncertainties in the economy.
It will have a negative effect on the demand for new office space.

[Valkyre]

Originally Posted by oli83

The article is from yesterday. I hope it stops all these comments like "I have a feeling that this tower will rise without halt.." and we stay with the facts

I am with you, but what we are seeing as far as construction goes, contradicts a lot of things the article states.

The Tower is still in construction, we see the core rising now and perimeter columns being installed.

It could very well be true and that the tower will stop once it reaches 8th floor. In fact it is what will probably will happen.

But i dont get that 27,000 tons of steel that were ordered if the tower is to stop. It seems stupid.

[RobertWalpole]

If, as according to the WSJ article, Silverstein needs a tenant commitment of only 400,000 sf in order to proceed, then this won't be stalled for long. However, filling the remaining 1.6m sf won't be easy since firms could get new space much cheaper at the HY.

[spectre000]

Originally Posted by Valkyre

I am with you, but what we are seeing as far as construction goes, contradicts a lot of things the article states.

The Tower is still in construction, we see the core rising now and perimeter columns being installed.

It could very well be true and that the tower will stop once it reaches 8th floor. In fact it is what will probably will happen.

But i dont get that 27,000 tons of steel that were ordered if the tower is to stop. It seems stupid.

Just because they've ordered the steel doesn't mean they'll erect it. Those are two different things. The steel will likely just go to a warehouse for storage till an anchor tenant is found.

[spectre000]

Originally Posted by RobertWalpole

If, as according to the WSJ article, Silverstein needs a tenant commitment of only 400,000 sf in order to proceed, then this won't be stalled for long. However, filling the remaining 1.6m sf won't be easy since firms could get new space much cheaper at the HY.

He also only needs to charge a minimum of $60 a square foot for the 400k lease. That's pretty competitive. I'm confident after the election a firm will take the space.

[chris123678]

Silverstine must not be a great negoatier, how does he lose all his potential tenants?

[RobertWalpole]

Originally Posted by spectre000

He also only needs to charge a minimum of $60 a square foot for the 400k lease. That's pretty competitive. I'm confident after the election a firm will take the space.

I agree. UBS, which seeks to return to Manhattan from Stamford, Ct when its lease expires in 2016, will need around 800k sf and a huge trading floor. T3 is tailor-made for them.

[600West218]

I think the full completion of WTC 1 and 4 will help alot. Right now the place is a huge mess of a construction site and can't look that appetizing to potential tenants. Once that starts to change they should be able to lease space more easily.

Of course, that means waiting two or three more years.

Things will happen here and this will be completed. I just won't happen as quickly as many of us would like.

[spectre000]

World Trade Center Construction Slows As Real Estate Market Remains Weak

"...Silverstein believes buyers will eventually come forward and construction will reach completion.

According to the company:

“Work is continuing at the 3 WTC site. The concrete core has reached the 8th floor but perimeter steel erection is continuing. The steel perimeter will reach the seventh floor in the fall. After that, there will be another year’s worth of work on the interior. If during this period, Silvertein Properties is able to secure a pre-lease for 400,000 square feet, then construction will continue uninterrupted to the top.”

In a statement to the Wall Street Journal Silverstein properties notes::

“We are 100 percent committed to building 3 World Trade Center to the top as quickly as possible. Working with our leasing agent, CBRE, we are marketing the tower widely and remain optimistic that we can meet our pre-leasing targets over the next year, which would assure that construction continues without interruption.”

[thejacko5]

Originally Posted by spectre000

Just because they've ordered the steel doesn't mean they'll erect it. Those are two different things. The steel will likely just go to a warehouse for storage till an anchor tenant is found.

Would you pay for half of something and they pay to store it?

The whole thing does not make any sense.

[spectre000]

Originally Posted by thejacko5

Would you pay for half of something and they pay to store it?

The whole thing does not make any sense.

I wouldn't, but I doubt the cost is really that expensive considering the cost of this project is around $2.3 billion. A few million dollars extra in storage costs is peanuts in the grand scheme of things. Plus I'll bet there just being bullish that things will continue very soon. I doubt they expect it to go on hold for many years.

Also they likely just want to avoid any major delays between a tenant signing and being able to quickly restart construction.

[Arctic howler]

if i had a trillion dollars, i would spend 20 billion just to get this entire site done even if they cant find tenants