Spotify to Relocate, Expand HQ at Silverstein's 4WTC
Digital Music Service Will Create and Retain 1,800 Jobs in Major Expansion to Fill WTC Tower in Deal Announced by NY Gov. Cuomo
Digital music service Spotify has signed a 378,000-square-foot lease covering 11 floors in one of the new World Trade Center towers in New York City for the new location of its US headquarters.
Spotify plans to relocate to its new location from its current offices in Midtown by early 2018. As part of the relocation agreement announced by New York Governor Andrew Cuomo, Spotify plans to increase its workforce in New York, adding approximately 1,000 new positions while keeping its current 832 NYC-area positions consisting of software engineering and product teams, label and artist relations, editorial, shows and original content teams, as well as marketing, legal, sales and finance personnel.
The digital music service will occupy floors 62 through 72 in the new Fumihiko Maki-designed tower owned by Silverstein Properties, with expansion options on floors 59, 60 and 61. Spotify’s relocation to the new building will make it the first office tower to be fully leased at the 16-acre World Trade Center site following two leases signed in the building by separate insurance companies this past summer.
"In the last 10 years, almost 700 companies have moved downtown, leasing over 16 million square feet of space," said Janno Lieber, president of World Trade Center Properties, an affiliate of Silverstein Properties. "The World Trade Center has led the way, attracting an amazing mix of creative, technology, financial services and media companies who have taken nearly 6 million square feet. Spotify’s decision to join Condé Nast, GroupM and MediaMath at the World Trade Center takes Downtown to a new level."
The first tower to be completed on the historic site, 4 WTC was designed to meet LEED Gold standards. The 977-foot, 72-story commercial tower totals 2.5 million square feet of high-tech office space over 56 office floors.
Tenants in the office portion of the building include MediaMath, SNY, Hudson River Trading, Zurich, Morningstar, PadillaCRT, Syntactx, Dixon Hughes Goodman, the Port Authority of New York & New Jersey, and the City of New York. The tower integrates into Downtown’s streetscape with a major concentration of retail at the street level and in underground pedestrian concourses that lead directly to 11 subway lines and the PATH trains. Retailers at 4WTC include Eataly, Banana Republic, Swatch, Kiehl’s, Beer Table and others.
To facilitate the music service's relocation within New York City, Empire State Development will award up to $11 million in World Trade Center Rent Reduction Program credits over 15 years.
"Lower Manhattan is more vibrant, diverse, and connected than ever before, and Spotify’s expansion is the latest example of this community’s incredible potential for growth," said Governor Cuomo, who shared his Spotify playlist HERE. "New York is rapidly emerging as the nation’s leading hub for tech and innovation, creating more jobs and more opportunities and emerging as the epicenter of the 21st economy. We are proud to welcome Spotify to 4 World Trade Center and to have the future of music be a part of the bright future of our dynamic tech community."
Jeremy Moss, director of World Trade Center leasing for Silverstein Properties, led the negotiations for the building ownership, together with a CBRE agency team that included Mary Ann Tighe, Steve Siegel, Ken Meyerson, Evan Haskell, Adam Foster, Steve Eynon, Robert Hill and David Caperna. Peter Riguardi, Ken Siegel, Alexander Chudnoff and James Wenk with JLL represented Spotify.
The landlord was advised by Russell G. Wohl and Ryan Knutson of Skadden Arps Slate Meagher & Flom LLP while the tenant was advised by Yossi Subar and Mark Maltz of Davis & Gilbert LLP.