Conde Nast Skips $2.4 Million Rent Payment on Manhattan Lease
(Bloomberg) -- The parent company of publisher Conde Nast is withholding rent payments for space at Manhattan’s One World Trade Center as discussions around its lease grow more contentious.
Advance Magazine Publishers Inc. declined to pay about $2.4 million due for January after asking landlords for reductions in square footage and rent at the downtown skyscraper, according to a bond document filed last week by the Port Authority of New York & New Jersey, a co-owner of the building.
The firm may withhold more rent unless a resolution is reached, according to the document.
“The Port Authority believes it has strong contractual rights to enforce full payment by Advance which it intends to assert,” the agency said in the filing.
Advance has been in talks with the Port Authority and co-owner the Durst Organization to renegotiate the 25-year lease for Conde Nast, an anchor tenant at One World Trade and publisher of Vogue, Vanity Fair and the New Yorker. It’s also seeking offices elsewhere for Conde Nast, including the New Jersey waterfront.
“The companies responsible for this lease have many billions of dollars in assets and have seen their stock holdings explode in value during the pandemic,” such as Advance’s investment in social-media company Reddit Inc., the Port Authority said in a statement. “These companies are entirely capable of satisfying their legal obligations.”
A representative for Advance said lease discussions are continuing while it considers alternative locations.
The Wall Street Journal reported on the filing earlier Tuesday.
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