Boston Properties discusses future of Times Square Tower

Real Estate Weekly, Sept 18, 2002 by Elaine Misonzhnik

No one is talking yet, but there is good reason to believe that Boston Properties might finally find a tenant for its ill-fated Times Square Tower. The development, which was planned in 2000 after Arthur Andersen pre-leased approximately 400,000 SF at the property, became an unintended victim of the Enron scandal. The accounting firm disintegrated just as Boston was starting to lay the foundation for the building.

Now, published reports claim that IBM has been in negotiations with the developer about leasing the space. The spokesman for IBM refused to confirm the news -- "We don't comment on speculation," she said. Both Boston Properties and Insignia/ESG, however, confirmed the reports indirectly.

"Boston Properties is in negotiations with prospective tenants, but it's their policy never to discuss any leases until they are finalized," said a spokesman for Boston. Insignia/ESG admitted something was in the works, but would not divulge any details.

But even if IBM does decide to relocate to Times Square Tower, it is likely Boston will still have to find another tenant. Back in 2000, it was easy to think that a l.2million SF office tower in Times Square would lease up fast. But with the current recession, the excess sublease space, and the still fresh fears of terrorism, the situation has changed.

It will be interesting to see if Boston will be able to get the $70 per SF rents it had originally hoped for.

Times Square Tower will be located on 42nd St., between Broadway and Seventh Ave. It is scheduled for completion in 2004.