Silverstein’s 4 World Trade Center, which spans 2.3 million square feet, now is fully leased. Credit: Joe Woolhead
(This story has been updated with information received after press time.)
NEW YORK CITY—Digital music service Spotify has agreed to move its US headquarters to 4 World Trade Center in a 378,000-square-foot lease. The move to the Silverstein Properties-owned property from offices in Midtown South will take place in early 2018.
Marking the largest lease with a private-sector tenant in the building, the tenant is taking floors 62 through 72 for almost 2,000 employees. Additionally, Spotify has an expansion option for floors 59, 60 and 61. With the space commitment and expansion option, the 2.3-million-square-foot, 977-foot high office tower is fully leased.
CBRE’s David Caperna, Steve Eynon, Adam Foster, Evan Haskell, Rob Hill, Ken Meyerson, Stephen Siegel and Mary Ann Tighe represented Silverstein in the transaction. Jeremy Moss, director of World Trade Center leasing for Silverstein Properties, led the negotiations for the landlord. On the legal front, Silverstein was advised by Skadden’s Marco Caffuzzi, Russell Wohl and Ryan Knutson.
The tenant was represented by JLL’s Peter Riguardi, Ken Siegel, Alexander Chudnoff and James Wenk. To encourage Spotify to expand its operations in New York, Empire State Development will provide the music service company up to $11 million in World Trade Center Rent Reduction Program rent credits, available for approximately 15 years of Spotify’s lease.
The World Trade Center Rent Reduction Program offers a New York State incentive for leasing commercial office space at the World Trade Center site and 7 World Trade Center. It provides a $5 per square foot incentive for 750,000 square feet of commercial office space leased at the complex.
Commercial office tenants projecting significant job-creation and representing a diversification of the industry base in the neighborhood may be considered for this program. Spotify plans to create more than 1,000 new jobs and retain 832 jobs while investing to fit out and equip its new office space. Governor Cuomo made the lease announcement Wednesday afternoon during a press conference, where he also released his Spotify playlist.
“Lower Manhattan is more vibrant, diverse, and connected than ever before, and Spotify’s expansion is the latest example of this community’s incredible potential for growth,” Governor Cuomo declared. “New York is rapidly emerging as the nation’s leading hub for tech and innovation, creating more jobs and more opportunities and emerging as the epicenter of the 21st economy.
Added Larry Silverstein, chairman, Silverstein Properties, “This major commitment by a pioneer of the digital economy is further proof that Lower Manhattan has become the top destination for New York’s most innovative companies. No other neighborhood can beat our mix of mass transit connections, apartments, restaurants, shops and culture.”
“New York gives us access to the most diverse talent market in the world and we’re incredibly excited to build out our new space at 4 WTC,” said Horacio Gutierrez, general counsel, Spotify. “We appreciate the help of Governor Cuomo and New York State in continuing to grow our team and home in New York City.”
“In the last 10 years, almost 700 companies have moved downtown, leasing over 16 million square feet of space,” noted Janno Lieber, president of World Trade Center Properties, an affiliate of Silverstein Properties. “The World Trade Center has led the way, attracting an amazing mix of creative, technology, financial services and media companies who have taken nearly 6 million square feet. Spotify’s decision to join Condé Nast, GroupM and MediaMath at the World Trade Center takes Downtown to a new level.”
Asserted Haskell, SVP and key member of Silverstein’s CBRE team, “Creative technology companies like Spotify are migrating Downtown, drawn to the highly efficient space and excellent transportation access at the Trade Center—which allows top-tier global firms to retain and expand their talent.”
“We are proud to have completed the leasing of 4 World Trade Center—our second, fully tenanted building at the complex, following the lease-up of the 1.6-million-square-foot 7 World Trade Center,” stated Mary Ann Tighe, CEO, CBRE tri-state region. “Now it’s onward to 3 World Trade Center, where GroupM’s 700,000 square feet is already anchoring the tower. 3 WTC will be ready for tenant work in 2018, and we already have significant activity.”