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New York Post
StubHub expands footprint at WTC, scoops up shrinking Spotify’s space
By Steve Cuozzo,
2 days ago
Spotify needed less space at the World Trade Center, but StubHub needed more. In a deal that should make everyone happy — including landlord Larry Silverstein — the online live-event marketplace has subleased a whopping 103,000 square feet from the music streaming company
Savills acted for StubHub, which will move from 44,000 square feet at 3 World Trade Center to more than twice as much space at 4 World Trade next door. The deal also allows StubHub to take more Spotify space at 4 World Trade later on, according to Savills.
Separately, a different, unidentified tenant at 3 World Trade may exercise an option to expand into StubHub’s old space, a source said.
StubHub will shift its offices to 4 World Trade Center. Google Maps
“This significant expansion at 4 World Trade supports StubHub’s growth within its global headquarters in one of the premier buildings in Manhattan, not just Downtown,” said Savills managing director Scott Bogetti. “Structuring a deal that meets StubHub’s needs is a testament to the collaborative effort between all parties involved in this transaction.”
The move also illustrates the strength of Silverstein’s World Trade Center holdings — towers 3, 4 and 7 which have about 10 million square feet and are virtually full.
Silverstein leasing director Jeremy Moss said of the Spotify-StubHub situation,
The sublease terms weren’t known. Moss said that direct rents for what little space remains available are in the $90s per square foot at 4 WTC and from the $90s “well into the hundreds” at 3 WTC.
Spotify is shrinking its office footprint due to layoffs, cost-cutting and a liberal work-from-home policy. It earlier sublet 69,000 square feet to payroll management outfit Rippling and 85,000 square feet to language-learning platform Duolingo.
The sublease to StubHub brings Spotify’s space to little more than half of its original 564,000 square feet at 4 World Trade.
Other large tenants at 3 World Trade are WPP, law firm Freshfields, McKinsey and Uber. In addition to Spotify, 4 World Trade is home to insurer Zurich, a division of KKR and online financial platform Clear Street which took over floors previously leased to Media Math.
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