THE WHAT? Conde Nast has declined to pay some US$2.4 million in rent for its One World Trade Center space due to a dispute with its landlords, according to a report published by The Wall Street Journal, quoting a bond document filing.
THE DETAILS The dispute centers around Conde Nast-owner, Advance Publications’ desire to reduce its square footage. However, landlord The Port Authority is set on enforcing its contractual right to advance payment for the space, per WSJ.
“These companies are entirely capable of satisfying their legal obligations, and the Port Authority has strong rights to enforce full payment,” Ben Branham told The WSJ on behalf of the Port Authority.
THE WHY? As the pandemic hits ad revenue, publishers have embarked on a cost-cutting mission cutting head count and reducing office space. A spokesperson for Advance told The Wall Street Journal, “Advance continues to be in discussions about bringing the lease in 1WTC into line with current market conditions and its ongoing needs at that location. We are also considering alternative solutions to address these requirements.”