The report contains some recognizable errors. It tells us that Empire/Blue Cross, who had signed a 461,000 s.f. lease at WTC1 in 1997,
"signed a lease for 105,429 s.f. at 11 West 42nd Street and for 322,000 s.f. at MetroTech 9 South in Brooklyn for 1,300 employees. These commitments represent 100,000 s.f. less than previously occupied at WTC."Simple arithmetic however, makes that a net loss of 33,571 s.f.
TenantWise says that Cantor Fitzgerald leased 245,000 s.f. at WTC, and after the attacks, relocated to 80,000 s.f. at 135 East 57th Street and decentralized its operations into two other new locations: Reston, VA and London. However, a New York Times article from January 1997, said,
"[t]he company has renewed its lease for the 104th and 105th floors -- the top office floors in the 110-story, 4.7 million-square-foot tower -- and has added the 103d and part of the 101st floors."Why Cantor was expanding its office requirements in 1997, at the same time they began significantly downsizing as a result of advances in electronic trading technology, does not represent a failure of corporate forward thinking, but it is key to analyzing what this real estate data represents. In my opinion, adding on one-and-a-half floors of tenancy represents a "Potemkin office" strategy that began as early as the bombing in 1993, which was meant to structure the building's occupancy in anticipation of their eventual destruction. Howard Lutnick's "brother Gary" was said to have worked on the 103rd floor. This represents a net loss of 75,000 s.f in space required by Cantor Fitzgerald.
The decline in the need for office space for tenants who relocated after the disaster is striking. In only one or two cases did a firm increase their square footage in a temporary move or permanent relocation. Keep in mind, that each floor of the World Trade Towers had a rentable area of approximately one-acre in size, (an acre is 43,560 square feet.) The term "backfill" is used by commercial real estate brokers to describe an office tenant who relinquishes space but transfers the employees housed there into other corporate offices without having to lease additional new space.
The case for a Potemkin-office strategy is made most unambiguously in the 1997 lease signed by Oppenheimer Funds for 231,000 s.f. at WTC2. After the attacks, Oppenheimer signed a 10-year lease at 498 Seventh Avenue for 135,000 s.f., for a net loss: 96,000 s.f. No mergers, acquisitions, spin-offs or back offices were announced as part of this transition.
245,156 s.f. at WTC2, Fiduciary Trust signed a part direct/part sublease for 156,000 s.f. at 600 Fifth Ave and occupied the space in November. Approximately 650 employees will operate from 8 floors at this location. Net Loss: 89,156 s.f.
100,000 s.f. at WTC1 (floors 49-51 sic), Dai-Ichi Kangyo Bank is now part of Mizuho Corp. Bank, located at 1251 Ave of Americas and at Harborside Plaza in Jersey City, NJ. Net Loss: 100,000 s.f.
182,956 s.f. at WTC2, Fuji Bank is now part of Mizuho Corp. Bank and is operating from Mizuho offices at 1251 Ave of Americas and Harborside Plaza in NJ. Net Loss: 182,956 s.f.
179,244 s.f. at WTC5, Credit Suisse First Boston occupied 1 Madison Avenue and 11 Madison Avenue and backfilled approximately 700 employees from 5 WTC. CSFB has no new space requirements and sublet its space at 277 Park Avenue. Net Loss: 179,244 s.f.
45,540 s.f. at WTC2, Commerzbank Capital Markets backfilled into existing space at 1251 Avenue of the Americas. Net Loss: 45,540 s.f.
26,367 s.f. at WTC2, IOC/Regus is operating from an existing office at 245 Park Avenue. (Regnus signed a lease for half of the 93rd floor in WTC2 in June of 2001. After the attack, the Guardian reported on September 14, 2001, that "Regus Business Centres said five employees unaccounted for but trying to ascertain precisely how many clients were in the offices. Concerned toll could rise significantly." Net Loss: 26,367 s.f.
40,000 s.f. at WTC2, Continental Insurance is in a long term lease at 40 Wall Street. Offices moved prior to the attacks. Net Loss: 40,000 s.f.
10,000 s.f. at WTC1, Zim-American Israeli Shipping had put its 16th floor space at the World Trade Center up for sublease and moved a majority of its employees to Norfolk, VA before the attack. Now, a few employees have moved into a smaller 5,000 s.f. office at 1000 South Avenue in Staten Island, NY. Net Loss: 10,000 s.f.
18,591 s.f. at WTC, TD Waterhouse Group, Inc. A move to a new headquarters in Jersey City was in progress since June 2001 and many employees from WTC and other locations had already relocated there. After the attack, WTC employees moved to the new headquarters in Harborside, Jersey City, and a few to an existing office at 100 Wall Street. Net Loss: 18,591 s.f.
12,211 s.f. at WTC, Barclay's offices were relocated from WTC1 to 222 Broadway before the attack. Has regained possession of its space at 222 Broadway. Net Loss: 12,211 s.f.
2WTC 50,903 s.f. GBI Capital/ Ladenburg Capital Management will abandon both their 21,970 s.f. at 22 Cortlandt St. and WTC2, GBI will backfill both into existing Ladenburg offices at 590 Madison Avenue and in Long Island. Net Loss: 50,903 s.f.
25,000 s.f. at WTC, World Travel employees operated a small office for Sidley Austin Brown & Wood and relocated with the law firm to 787 7th Avenue. (a half-acre sized travel office serving a mid-sized law firm?)
48,000 s.f. at WTC, Washington Group relocated to 30,000sf at 2 Penn Plaza Net Loss: 18,000 s.f.
155,490 s.f. at WTC2, Verizon had 400 employees, backfilled elsewhere 155,490 Net Loss: 155,490 s.f.
20,750 s.f. at WTC1, Global Crossing Holdings Ltd. used space on the 83rd floor as record storage and will not replace it. Net Loss: 20,750 s.f.
10,325 s.f. at WTC, The Nishi-Nippon Bank closed its New York office at 1 WTC and no longer has a New York presence. Net Loss: 10,325 s.f.
40,000 s.f. at WTC1, Asahi Bank is now Resona Bank Ltd., and operates from 8,000 s.f. on the 19th floor of 546 5th Ave. Net Loss: 32,000 s.f.
13,262 s.f. at WTC, Friends Ivory & Sime, Inc. closed its New York office and relocated to London. Net Loss: 13,262 s.f.
57,000 s.f. at WTC, Fireman's Fund, an Allianz Company, relocated to 36,000 s.f. at 75 Wall St. Net Loss: 11,000 s.f.
89,162 s.f. at WTC, Sun Microsystems relocated to 78,200 s.f. on floors 3 and 4 at 101 Park Avenue. Net Loss: 10,962 s.f.
27,000 s.f. at WTC, Seguros Commercial closed its New York Office and relocated to headquarters in Plano, TX. Net Loss: 27,000 s.f.
59,000 s.f. at WTC, SCOR consolidated with a newly acquired company and relocated WTC employees to existing offices at 199 Water Street. (SCOR leased in WTC in Sept. 1995. "SCOR had been at 110 William Street, he said, and bought a smaller company, Unity Fire and Marine, whose offices were at the trade center. "When it bought that company," he said, "SCOR decided it wanted to consolidate the two offices. It had a choice of doing it here or on William Street.") Net Loss: 59,000 s.f.
10,000 s.f. at WTC, Unistrat joined with affiliate company SCOR in space at 199 Water St. Net Loss: 10,000 s.f.
30,000 s.f. at WTC, Sandler O'Neill relocated to 919 Third Avenue (Into existing, or newly leased space? TenantWise's wording isn't clear.)
33,000 s.f. at WTC, Ohrenstein & Brown relocated to 20,000 s.f. at 1 Penn Plaza with 60 employees. Net Loss: 13,000 s.f.
44,325 s.f. at WTC, National Development & Research Institute relocated to 39,000 s.f. at 71 West 23rd Street. Net Loss: 5,325 s.f.
22,500 s.f. at WTC, NAIC Securities relocated to 16,000 s.f. at 1411 Broadway, 9th floor. Net Loss: 6,500 s.f.
80,000 s.f. at WTC, NY Shipping relocated to 18,000 s.f. of new office space in Iselin, NJ and to existing offices to 45 Broadway. Net Loss: 62,000 s.f.
24,539 s.f. at WTC, N.Y. Institute of Finance backfilled space from Pearson, Inc., parent company, at 1330 Avenue of the Americas for permanent relocation Net Loss: 24,539 s.f.
92,232 s.f. at WTC, Kemper Securities signed a lease for space at 30 Rockefeller Center on 11th & 12th floors for 65,381 s.f. Net Loss 26,851 s.f.
15,000 s.f. at WTC, John J. McMullen Associates has relocated to 10,000 s.f. space at 70 Wood Avenue South, Iselin, NJ for 3 years with about 35 employees. Net Loss: 5,000 s.f.
180,000 s.f. at WTC, Guy Carpenter, a Marsh USA company, relocated its headquarters to 105,255 s.f. at 1 Madison Avenue and also placed some employees in new Marsh space in Hoboken, NJ. Net Loss: 74,745 s.f.
10,000 s.f. at WTC, Drinker Biddle & Reath is relocating to existing offices in Florham Park, NJ, and a new 5,000 s.f. space at 30 Broad Street. Net Loss: 5,000 s.f.
58,500 s.f. at WTC, Baseline signed a sublease for 58,000 s.f. of permanent office space at 395 Hudson Street, 6th floor, for approximately 200 employees. (Baseline had subleased at the WTC2 in March 1999, from a previous tenant, Georgeson & Company, who was already in the process of upgrading the floors, having about finished the full 77th floor. Baseline intended to put executive offices on the half-floor above. The floors were connected by escalator.
11,612 s.f. at WTC, AT&T relocated to existing offices, including headquarters at 32 Avenue of the Americas, 811 10th Ave, 33 Thomas St, 75 Broad. AT&T will not need any additional space. Net Loss: 11,612 s.f.
111,398 s.f. at WTC, Standard Chartered Bank relocated to 92,000 s.f. at 1 Madison Avenue. Net Loss: 19,396 s.f.
American Express had 55,000 s.f. at 100 Church St., 23,000 s.f. at 140 Broadway, 1,120,500 s.f. at 3WFC3, and 106,117 at 7WTC, who were backfilled into other spaces. Net Loss: 106,117 s.f.
1,415,000, s.f. at 190 Liberty Street, Deutsche Bank employees from downtown locations temporarily relocated to existing offices. In 2001, before the 9/11 attacks, Deutsche Bank had purchased 60 Wall St. from J.P. Morgan Chase. Deutsche Bank initially planned to occupy the entire building for its own use, but in 2004 it reported it may sublease 200,000 s.f. Net Loss: 1,415,000 s.f.
1,202,900 s.f. at WTC7, Citigroup/Soloman Smith Barney backfilled existing space in Midtown; Rutherford, NJ; and Stamford, CT. Net Loss: 1,202,900 s.f.