Report: Merrill Lynch Could Move to New WTC Tower

Merrill Lynch & Co. is in talks to move its company headquarters into one of the new towers due to be built on the World Trade Center site in Lower Manhattan, according to a report by Bloomberg's David Levitt.

The report, citing sources close to the negotiations, stated that the banking giant has already met with developer Larry Silverstein, whose Silverstein Properties Inc. owns the building rights to the site. The company is interested in either Two or Three World Trade Center, the report stated. Designed by Norman Foster, Two World Trade Center is planned as a 1,254-foot tall office tower. Three World Trade Center, designed by Richard Rogers, is slated at 1,155 feet.

Merrill Lynch's current headquarters is in the nearby World Financial Center, under a 2.3 million-square-foot lease due to expire in 2013. Should the firm opt to move into one of the WTC towers, it would be a hugely significant vote of confidence in the development, which has been beset by political haggling, controversy over the design of the buildings and the planned 9/11 memorial and questions as to whether the new towers would be able to draw tenants.

The rebuilt 7 World Trade Center, also owned by Silverstein, has seen significant leasing activity since reopening in May. Most notably, Moody's Investor Services agreed to a 600,000-square-foot lease at the building in June. In addition, as reported by CPN on Nov. 2, banking firm ABN AMRO is currently in talks with Silverstein to lease 160,000 square feet in WTC 7, which would bring the total leased space in the property to 960,000 of the building's 1.6 million square feet.

In addition to the 7 WTC leases, there has been some significant leasing activity for the Freedom Tower, the 1,776-foot-tall centerpiece of the WTC redevelopment plan. In mid September, the federal and New York State governments announced plans to lease 1 million square feet in the 2.3 million-square-foot skyscraper, scheduled for completion in 2012. The three additional buildings, One, Two and Three WTC, are due to open at approximately the same time.

According to the Bloomberg report, Merrill Lynch is also considering other sites to move their headquarters, including the current Hotel Pennsylvania, located across from Penn Station at Seventh Avenue and West 33rd Street.