The overall cost of the One World Trade Center was approximate $3 billion per square foot according to the budget estimate that was made in February 2007 (Taylor, 2012). However, a recent financial estimate that was made in April 2012 proved that the cost of the building had risen to about $3.9 billion with financial analysts stating that it is the most expensive building in the world. Part of the funding for the building of about $1 billion came from insurance compensation as a result of the losses that were incurred during the September 11 attacks (Taylor, 2012). Other funding included $250 million that came from the state of New York alongside additional $1 billion that was to come from the Port Authority after the sale of bonds. Considering the high responsibility that was taken by the Port Authority, pricing for bridges and tunnels was had to be increased to provide a lucrative platform for raising the money. In fact, a scheduled toll increase of 56% remained operational between 2011 and 2015 even though the proceeds that were realized were never included in the project’s finances (Heathcote, 2013).
An initial financial statement that was released to explain the source of funding for the building stated that it was to cost approximately $4 billion even though the exact cost was never provided. That estimate was made because the skyscraper’s plan had shown that it would end up as a very complicated building. In fact, it came to the attention of the public that in 2015, Silverstein Properties was open to welcome a debt investor of an equity partner that could contribute $500 million. Consequently, One World Trade Center’s design was to integrate many new features that encompass multiple terraces thereby meeting the current state of the art. Additionally, the classy glass curtain wall alongside the many security features are amongst the essential aspects of the skyscraper’s designing that increases its construction cost (Heathcote, 2013).
- Heathcote, E. (2013). Rebuilding the World Trade Center: a progress report. Available at https://www.ft.com/content/101c8934-6805-11e3-a905-00144feabdc0
- Taylor, A. (2012). One World Trade Center: Construction Progress. Available at https://www.theatlantic.com/photo/2012/09/one-world-trade-center-construction-progress/100367/