Tishman negotiates new lease for law firm at 2 WFC.

Tishman Real Estate Services, serving as strategic real estate advisor to the prestigious law firm of Thacher Proffitt & Wood, has negotiated a new lease for the Firm at 2 World Financial Center. After having been dislocated from the South Tower of the World Trade Center, Thacher is believed to be the first major tenant from the 9/11 disaster to sign a lease close to its former headquarters.

Thacher Proffitt, one of the nation's oldest law firms, originally occupied space at 2 World Trade Center and following Sept. 11, temporarily relocated to 11 West 42nd St. The new lease will bring more than 300 employees back downtown, where the firm began over 150 years ago and where many of its important financial customers remain headquartered.

After an exhaustive year-long process evaluating 67 spaces, TRESCO arranged for Thacher Proffitt to sublease 137,000 SF of space on floors 26 through 29 of 2 WFC from Merrill Lynch until 2013, at which time Thacher will hold a direct lease with the building's owner, Brookfield Properties Corporation.

Thacher Proffitt anticipates making the move in August 2003 after the build-out is complete. The process began more a year ago in October, 2001 when Thacher Proffitt turned to Tishman because of its expertise in helping major international corporations locate corporate headquarters in New York. Tishman prepared a detailed study that analyzed the available long-term office space in the Midtown, Midtown South, and Downtown areas, including comparisons of rental costs, incentives, and amenities. The study identified 67 Manhattan properties that could satisfy Thacher Proffitt's space needs. Tishman then worked with Thacher Proffitt to narrow the list based on the Firm's requirements and objectives.

"Thacher Proffitt identified certain criteria important to the Firm. They maintained early on that they wanted to operate within a certain budget," says Joseph J. Simone, president of TRESCO. "They were looking for a price comparable to what they were paying at the WTC prior to the attacks. In addition, they wanted a quality building with good light and views."

In the final review, it was the value proposition that was able to bring the Firm back to Lower Manhattan. Simone commented: "Beyond the emotional considerations, the WFC buildings are some of the highest quality office buildings in Manhattan, and the economics of the Midtown vs. Downtown rent disparities made them more confident with their decision."

The WFC proposal was a late entry in the review process, stated Simone, because Merrill Lynch first had to negotiate an extension beyond 2013 with Brookfield. Tishman also evaluated the economic incentives from the city, state and Federal governments in order to compare the various proposals evenly.

"Thacher Proffitt is finally going back home," said Jack Williams, chairman and managing partner of Thacher Proffitt & Wood. "We are delighted with the service that Joe Simone and his colleagues at TRESCO provided for us. The research and analysis of our various options was top notch and now we'll be able to operate in Two World Financial Center, a great building that we are looking forward to moving into in August 2003."