Green Lease

Although the credit crisis has definitely taken its toll on local green building projects in a variety of ways, the Post 's Steve Cuozzo reported today that Larry Silverstein may be close to landing a tenant who will at least partially replace the space that HSBC was slated to occupy at LEED Gold-certified 7 World Trade Center . HSBC's potential move to five floors at the green tower was heralded, but a deal to sell its Midtown headquarters at 452 Fifth Avenue (at West 40th Street) fell apart several weeks ago after bidders came up $180 million short of the bank's $600 million asking price. Accordingly, HSBC very quietly pulled out of its agreement to move downtown to Manhattan's first LEED-certified commercial office building. Now, the German bank West LB is "in 'real' discussions" with Mr. Silverstein for space across three floors, according to Cuozzo, and although the sides have yet to agree upon a term sheet, documents have been traded back and forth.

The Harp, which would be the first green commercial office building to open in Long Island's Nassau County, broke ground back on September 22. Developed by Foremost Real Estate, the project is aiming for a LEED Gold rating and should be ready for a January 2010 occupancy. The 3-story, 54,000-square-foot tower along Great Neck's "Miracle Mile" was designed by Guilor Architects and will include a number of green design features, including efficient water and lighting fixtures, air flow measurement devices, and extensive daylighting thanks to the building's all-glass curtain wall. Majestic Property Affiliates, which is the Harp's exclusive leasing agent, will also offer each of the 18,000-square-foot, loft-style office floors for sale prior to opening lease negotiations. According to Magestic's Domenic Maltempi, "[e]veryone in the marketing and leasing end of commercial real estate has seen that customers want a clean, new, environmentally-conscious environment. I think The Harp reflects the advances that are being made and where American industry is headed.

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Hedge fund HBK Investments, which last summer signed on for LEED Platinum hopeful Bank of America Tower's 40th floor at $135 per square foot, has officially terminated its commitment for 12,000 square feet of that space. The Dallas-based firm will still retain 24,000 square feet on the 40th floor and the Dursts will now seek to lease the freshly freed space for an incredible $185 per square foot. The only space in the building that remains in addition to HBK's former space is 30,000 square feet on the 37th floor, where the Dursts are asking the same rent; the family will consider partitioning either space into blocks for smaller tenants. According to Eric Engelhardt, one of Durst's vice presidents for leasing, "[t]here is a greater universe of smaller tenants looking for high end space." (To that end, note 510 Madison Avenue, where each full-floor block of space is less than 15,000 square feet and the Macklowes have only signed up one tenant to date after coming close to inking Apple a few weeks ago).