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.
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).
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.