Long before Condé Nast took 1 million square feet at
1 World Trade Center, the New York Academy of Sciences took 40,000 square feet
at 7 World Trade Center -- a small lease signed in 2005 which, in years to
come, might go down in the annals as the truly pioneering deal.
The Academy's move to Larry Silverstein's 7 WTC
proved to be the first, brave baby step toward filling up the 52-story, 1.7
million square-foot tower -- a momentous threshold just achieved.
As first reported yesterday morning on nypost.com,
financial advisory firm MSCI took 125,000 square feet on the building's
47th-49th floors. The milestone lease brings the project to substantially 100
percent occupancy.
It also illustrates momentum downtown. MSCI is
expanding from about 80,000 square feet at 1 Chase Plaza and 88 Pine St., which
it will leave.
CB Richard Ellis global brokerage chief Stephen B.
Siegel, head of 7 WTC's leasing team, said while negotiating with MSCI, "There
were two other deals backing it up, including one banging down the door."
The now-completed saga of 7 WTC vindicates
downtown's commercial viability during a decade when many had written it off.
Had 7 WTC flopped, it's unlikely that 1 and 4 WTC would be rising, much less
that Condé Nast would have taken the plunge. It affirmed that new, speculative
state-of-the-art Manhattan office buildings invariably succeed, despite griping
that new construction will produce a "glut."
It's easy to forget how widely hated 7 WTC was in
political and real estate circles. The abuse began practically the day ground
was broken in 2002. Mayor Bloomberg blasted Silverstein for asking $50 a square
foot in a project without signed tenants. Since other downtown addresses
fetched $35 a foot, why not 7 WTC?
Sen. Chuck Schumer questioned Silverstein's ability
to draw tenants. The New York Times and Daily News blasted the project for
supposedly glutting the market. New York Magazine called it "Larry's 52-story
problem."
They didn't grasp that office-tower design has
advanced more in the past 10 years than it had in the previous 40, and that
companies would pay dearly for the handful of addresses where it could be
found.
Rival developers and some leasing brokers loathed 7
WTC as well. Fearing its unclaimed space would drive down rents, and resenting
that Silverstein was able to bankroll the $700 million project with insurance
proceeds, they privately rooted for it to fail.
Some might have thought they were getting their wish
before and after the tower opened in May 2006. A major lease collapsed when
China's Vantone Beijing failed to post a letter of credit.
Talks with law firm Fried, Frank to occupy much of
the tower fell through. In 2008, HSBC backed out of advanced talks for five
floors. In 2009, ABN Amro put up for sublease all 140,000 square feet it had
rented, effectively placing Silverstein in competition with his own building.
Meanwhile, 7 WTC had to fend off warnings that no
one would ever want to work at the site again -- and with the mess all around
it. "The site across the street was a disaster," Silverstein said yesterday.
"It was one massive, horrendous urban blight directly south of it."
"Ground Zero" remained that until the Port
Authority, energized by new executive director Chris Ward, began excavating in
earnest in 2008. The macabre ruin of the CUNY's old Fiterman Hall, practically
at 7 WTC's door, stood until two years ago.
Yet, amidst the shambles, 7 WTC's glimmering
trapezoidal form designed by David Childs drew raves from architectural
critics. Jenny Holzer