Quote:
Originally Posted by Michagain
With interest rates as low as they've been and demand for office space high everywhere else, prospects for this project look to be in bad shape. I think WTC vacancy rates are still pretty high, too. I'm starting to expect a scaled-down property on this site, unfortunately.
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Tower 4 is full, there is some space in the Freedom Tower. Tower 3 is about to come online, it's not unusual for a new skyscraper of that size to have some vacancy.
Tower 2 needs a signature tenant. I think it would be foolish to expect a scaled-down property. For one thing, this is the last large scale location for an office tower in the financial district (the tower 5 site is for a smaller tower), and they aren't going to build a smaller tower here for the sake of getting something built. This tower will be built to market demand, something they learned from the original construction. The other towers
will fill up, and again, this will be the only location for new, large scale construction Downtown. There will always be demand for new office construction Downtown, you just have to wait for it. Just ask yourself this, how often does Downtown get the amount of new office space it has gotten with the rebuilt WTC so far?