The lease just signed by KiDS Creative at 1 World Trade Center for more than $90 a square foot is for the highest rent ever paid downtown — a surprising development on the same day 1 WTC co-owner Douglas Durst claimed demand for the tower was weak.
As first reported Tuesday on nypost.com, KiDS Creative — an ad agency offshoot of premier digital artistry shop Box Studios — signed for just under 35,000 square feet on 1 WTC’s 87th floor, only three floors below the highest office level.
The $90-plus per-square-foot rent easily tops rents in the $70s at Larry Silverstein’s 7 World Trade Center and other downtown locations.
The news broke just hours after Durst, the Port Authority’s partner in 1 WTC, told the Wall Street Journal he’s had to reduce asking rent in the middle office floors to $69 a square foot from $75.
However, asking rents are $80 to $100 a square foot above the 64th floor, Durst rep Jordan Barowitz said.
The KiDS Creative deal, the first new lease at 1 WTC in nearly three years, reflects burgeoning demand for the WTC and neighboring buildings by media, tech and digital firms.
In fact, a batch of completed and almost-done deals make claims that downtown faces an office “glut” look increasingly ridiculous.
“This particular tenancy represents just the kind of creative user with a global presence that we’re seeking,” said Cushman & Wakefield powerhouse dealmaker Tara Stacom, the leasing agent for 1 WTC.
Box Studios and KiDS Creative were both founded by photo-imaging wizard Pascal Dangin, who describes Box as a “finishing house devoted to the image.”
Box, based on West 14th Street, specializes in branding for such lines as Dolce & Gabbana, Balenciaga and Alexander Wang.
More than 55 percent of 1 WTC’s 3 million square feet are leased, mostly to Conde Nast (1.1 million square feet) and also to the US General Services Administration. The tower is to open by the end of 2014.
Durst leasing chief Eric Engelhardt said, “We expect to sign more leases [for 1 WTC] with companies in the creative, media and tech world.”
As we first reported last week, the PA and Durst are also in advanced talks for 1 WTC with Percolate, a provider of online content marketing software, for 40,000-plus square feet, and in more tentative talks with Hugo Boss for a much larger block.
Meanwhile, online software developer MediaMath has a nearly done deal for 130,000 square feet at Larry Silverstein’s 4 WTC.
Media/ad giant GroupM has already signed for over 500,000 square feet at Silverstein’s 3 WTC, which is stalled at seven stories as the PA considers Silverstein’s request for a construction-loan guarantee.
The PA board is expected to vote on the proposal Wednesday.