Bank of New York Takes 192,000 Square Feet at One World Trade Center During HQ Renovation

Bank of New York has agreed to occupy 192,000 square feet — four floors — of former Condé Nast space at One World Trade Center while it renovates its headquarters at 240 Greenwich Ave., according to published reports.

The Commercial Observer reported that the bank struck the deal as a temporary home during the renovation of its Greenwich headquarters. The move into the downtown tower reflects broader leasing momentum in Lower Manhattan, officials and commercial brokers say.

The Downtown Alliance, the business improvement district for Lower Manhattan, said in its second-quarter summary that leasing activity rose 87% compared with the same period in 2024 — the most robust pace since the start of the COVID-19 pandemic. Availability in the downtown office market fell for the sixth consecutive quarter to 22.8%, the Alliance reported, a decline that reflects, in part, the removal of 89,000 square feet of office space from the market for residential conversion.

CBRE data published this year corroborate the trend, showing about 2.7 million square feet of downtown leasing activity to date, which includes new and renewal leases, and more than 870,000 square feet of positive absorption. Industry sources say the combination of tenant relocations, renewals and conversions is tightening market conditions.

The Alliance also highlighted long-term demographic changes in Lower Manhattan. The report noted that the residential population below Chamber Street, including Battery Park City, has grown from just under 33,000 before the Sept. 11, 2001 attacks to about 70,000 people, signaling a sustained reconfiguration of the neighborhood into a mixed-use district.

Market participants said the Bank of New York's temporary occupancy at One World Trade Center underscores both short-term tenant needs tied to corporate capital projects and longer-term confidence in downtown office product. Brokers point to a combination of relocations to newer, amenity-rich towers and the shrinking pool of available older office space — some of which is being repurposed for housing — as factors compressing effective vacancy.

The transaction adds to a year in which several large leases and renewals have bolstered downtown activity, according to brokerage reports. While landlords and brokers touted the uptick in demand, they also noted that overall availability remains above pre-pandemic norms and that some tenants continue to weigh hybrid-work space plans as they decide on long-term footprints.

Bank of New York did not immediately respond to a request for comment. The reported deal and the Alliance and CBRE data together illustrate an evolving Lower Manhattan market 24 years after the 2001 attacks, with rising leasing velocity, shifting uses for older office stock and growing residential populations altering the neighborhood's economic landscape.