Thirty-one down, 11 to go. Larry Silverstein has penned away another of the 42 leasable floors at his 7 World Trade Center, signing a lease with the advertising firm Arnell Group, according to a source familiar with the deal.
The deal had been pending for a number of weeks, but the lease has now been signed, with the group led by marketing veteran Peter Arnell agreeing to pay about $70 a square foot, according to the source.
The lease for the entire 40,000-square-foot 37th floor leaves unfilled about 440,000 square feet on 11 floors in the 52-story, 1.7 million-square-foot building, which was completed in early 2006. Ten of those 11 remaining unclaimed floors are at the top of the glass tower—the most expensive space left, with asking rents hitting upward of $75 a foot.
Of course, it’s not as though the line for potential tenants is running around the block. The deal with Arnell represents the largest deal since last spring, when anchor tenant Moody’s Corporation agreed to take another two floors in the building. But Mr. Silverstein has been standing his ground, demanding rents once unfathomable for downtown, and it appears that tenants are still filing in, if gradually.
That the deal came from an advertising firm is a telling sign of the market. Given 7 World Trade Center’s tenant roster and location, it would seem like a natural magnet for financial firms. But the financial industry isn’t budging right now, and downtown advocates have been urging communications firms to help diversify the area.
Indeed, it marks the second recent large lease in Lower Manhattan for Omnicom, the parent company of Arnell. Omnicom agreed to take about 185,000 square feet at 195 Broadway in November, moving its subsidiary OMD into the building from multiple Manhattan locations.
CB Richard Ellis represented Silverstein Properties on the Arnell deal at 7 World Trade Center. Representatives from CB Richard Ellis and Silverstein declined to comment.