Servcorp Limited, the famous multinational organization that sells virtual office space and other IT services, has reportedly signed an agreement to lease an entire floor on the famous One World Trade center building in New York City.
The New York Post broke the news of the lease and is reporting that the Australia-based firm has agreed to occupy 34,775 square feet - the entire 85th floor - for 15 years. The space at One WTC is one of the many office spaces it plans on taking up in the Big Apple.
Its other locations include spaces at "17 State St., two in Midtown at 1330 Ave. of the Americas and the Seagram Building at 375 Park Ave," the Post reports. Servcorp represented itself in the deals. No other details of the transaction were revealed.
Servcorp is the latest company to join One WTC's tenant list. Over the last few months, the building has been attracting a lot of upscale firms. Among its newest tenants are Legends Hospitality, a sports entertainment firm owned by the New York Yankees, BMB Group, a London-based wealth management firm and advertising agency KiDS Creative.
Conde Nast, Morgan Stanley and Bank of America have already taken up space in the building, which is slated to open later this year. General Services Administration also takes up about five floors in the building from 50th to 55th levels.
Servcorp's entry makes One World Trade Center 57 percent leased now. Each floor makes up one percent of the building.
Demand for space in the building was relatively low for the past one year. The yet-to-open building could only lease out 30 percent of its space last year. The high rents were hampering occupancy in the building.
Therefore, the organization slashed rent by about 10 percent in May 2014 and that strategy paid off. Currently, rents for space below the 64th floor is about $69 per square feet, down from the $75 charged earlier. However, for floors above the 64th level, rents are still soaring from $80 to $100.
But, the pace of leasing activity seems to be picking up.
"These pre-built and build-to-suit opportunities have consistently attracted interest from companies worldwide, eager to establish a presence at this elite venue. Tenant prospects appreciate the status and allure delivered by the tallest building in the Western Hemisphere. This globally recognized address resonates perfectly with these companies' own international reach and prestige," Eric Engelhardt, director of leasing at 1 WTC, was quoted by the Commercial Observer.
One WTC stands at 1776 feet (architectural height). The 104-storey tower remains a historic, symbolic monument to those killed in the September 11 attacks. The iconic building, where construction is still on, was crowned the tallest building of the United States by the Council of Tall Buildings and Urban Habitat (CTBUH) last year.
