Description of As-of-Right Incentives.

Commercial Rent Tax Abatement
Tenants are exempt from Commercial Rent Tax for the entire term of their lease. Commercial office tenants in NYC pay a Commercial Rent Tax equal to 3.9% of gross rent. The benefit has no term limits, and is expected to save tenants $3.00 to $3.50 per RSF per annum.

Sales Tax Rebate
Tenants are exempt from sales tax on materials purchased in connection with their initial fit-out, including any fixtures, furniture and equipment. The sales tax savings is estimated to be $10.00 to $15.00 per RSF, which corresponds to a rental savings of approximately $1.00 to $1.50 per RSF per annum.

NYPA Power
The building receives electricity from the New York Power Authority at discounted rates. This benefit has no term limit. Based on current utility rates, tenants at 4 World Trade Center today would enjoy a savings of approximately 30% off of standard Con Edison rates (an annual benefit of $1.00 to $1.50 per RSF versus other buildings).

Other Savings.

The efficiency of the floor plates at the World Trade Center buildings allows tenants to fit their office space program into 5% to 10% less space than would be required in other buildings. This reduction in square footage translates directly into a significant savings of 5% to 10% in both rent cost and fit-out cost.