Three World Trade Center has signed a major lease with event space operator Glasshouse, ending a decade-long struggle to fill the tower’s podium level. Glasshouse struck a deal to launch its first downtown outpost in 66,436 square feet across three floors, marking a significant milestone in the ongoing revitalization of the World Trade Center site.
The lease is with Unibail-Rodamco-Westfield (URW), which owns the WTC’s retail space, and the Port Authority, which owns the land. Glasshouse partner Alex Holiday called the move a “once-in-a-generation opportunity” to set up a flagship “at one of the most important destinations in the world.” The venue is expected to handle up to 2,000 attendees, though the opening is at least 18 months away due to design and construction requirements.
Most of the Glasshouse space will be on the second and third floors of the podium. A 2,000-square-foot ground-level space on the Church Street side will serve as a VIP arrival lobby and guest entrance. Brazilian restaurant Fogo de Chao already occupies 5,000 square feet on the ground floor, but the Glasshouse lease still leaves some retail space available.
The dark lower levels were a persistent vexation for tower developer Larry Silverstein, who was able to fill 90 percent of the 2.5 million square-foot skyscraper with tenants including Uber, WPP, and financial and legal firms. The empty floors were more problematic for URW and its predecessor company, Westfield America, after two highly touted restaurant deals fell through over the years.
CBRE’s Chris Mansfield, Anthony Dattoma, and Zachary Weil represented Glasshouse in lease negotiations, while URW represented itself in-house. Mansfield, a CBRE vice-chairman, called the lease “a defining milestone for Glasshouse and reflects growing demand for high-quality, experiential venues in the city.”
The Glasshouse deal comes amid a wave of positive news for the World Trade Center site. Ground was broken the previous week for the new American Express headquarters at Two World Trade Center, which will complete the site’s quartet of skyscrapers replacing the Twin Towers. Together, the Amex groundbreaking and the Glasshouse lease represent the strongest run of positive news for the World Trade Center since before 9/11.
The deal also signals broader momentum in Lower Manhattan’s commercial real estate market. While Manhattan’s luxury residential market has shown signs of cooling, the commercial sector continues to attract major tenants. The World Trade Center’s filling out reflects a broader pattern of downtown recovery, with financial firms, technology companies, and experiential venues committing to long-term leases in the area.
For the Port Authority, the lease validates years of patience in waiting for the right tenant rather than accepting lesser deals. “As the ground landlord, it played an important role in the approval and execution of the long-term lease for Glasshouse Downtown,” a PA spokesperson said. The deal also benefits URW, which has been working to optimize its retail portfolio across the World Trade Center site.
Sources: New York Post, New York Post
