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Ground zero skyscraper to stop at seven floors?

Photo credit: Ajagendorf25

The new skyscraper being built at ground zero in New York is having a hard time finding tenants. The 80-storey 3 World Trade Center, one of four high-rise buildings being developed on the site of the former twin towers, may have to stop construction at just seven floors if demand remains low.

The lack of residents is the latest obstacle encountered by the controversial project, which is costing $11.7 billion to build, as the Port Authority of New York and New Jersey refuse to guarantee the necessary financing for Silverstein Properties Inc. to complete construction.

"Mr. Silverstein is not currently close to signing a tenant," sources told Crain's New York. It makes the scheduled 2015 completion date look increasingly unlikely, although Crain's adds that "the building's cap can be removed and construction can resume [at a later date] after he finds one."

The National September 11 Memorial & Museum, also planned for ground zero, has suffered from a similar funding dispute, according to the Associated Press, with its 2013 opening now pushed back from the 11^th anniversary of the 2001 attack. The second tallest building in the complex, 2 World Trade Center, can't find enough tenants either.

Speaking at an industry event, Port Authority executive director Patrick Foye told WNYC: "We're rooting, I'm rooting, the Port Authority is rooting for Larry and, if I had to hazard a guess, I think he'll come up with the tenant."

But while the major New York development is struggling to find tenants, it's another story in Florida. Talking exclusively to TheMoveChannel.com, Assetz highlighted the sunny state as a hotspot for overseas investors because substantial letting demand still exists there.

"The concept of supply and demand is key in the US as currently available properties, which are heavily discounted, still offer exceptional rental yields as home-ownership has declined from 70% to 60% in just a few years. There are not an abundance of these locations but Florida is currently one of them."

Indeed, Florida's property market has seen a record period, with Miami's real estate transactions rising 50 per cent year-on-year in 2011. 24,929 properties were sold last year, according to The Miami Association of Realtors, a 46 per cent increase on the year before as overseas buyers pick up low-priced homes with strong buy to let potential.

"Miami homes sales set a record in 2011, exceeding transaction levels during the height of the boom in 2005," said Martha Pomares, 2012 chairman of the board of the MIAMI Association of REALTORS.  "Rising pending sales [in December] despite dwindling inventory reflects a very healthy marketplace in Miami fuelled by strong demand from both domestic and international buyers."

At the same time, The Overseas Guides Company saw a 35 per cent surge in enquiries in the last quarter of 2011, which it attributed to the popularity of Spain, Portuguese and American real estate - particularly property in Florida.

Development may be slowing in Manhattan, but while residents avoid the World Trade Center site, demand from tenants and investors in Florida just keeps building higher.

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