EY, formerly Ernst & Young, is eyeing space in New Jersey and lower Manhattan as it seeks to pare down its footprint at its 5 Times Square HQ and cut costs by taking advantage of tax incentives and lower rents.

EY is looking to relocate up to 170k SF of the 1M SF it leases at 5 Times Square to 121 River St in Hoboken, on the New Jersey waterfront, Crain's reports.

EY would be eligible for substantial tax incentives if it goes through with the move, like The NJ Grow program, which offers tenants up to $15k in tax credits for every employee they bring to the state.

EY is also looking at the possibility of moving roughly half its offices to somewhere in lower Manhattan, where rents are lower than its current digs.

The company will likely keep a much-reduced footprint at 5 Times Square or a different Midtown location.

"We are evaluating a host of locations, all aligned with our strategic plan to deliver service across the greater New York City marketplaces, including New Jersey and Connecticut,” the firm says in a statement obtained by Crain's.

EY’s lease at 5 Times Square isn’t up until 2022, but it’s fairly standard procedure for a big tenant to begin exploring its options far in advance. [Crain's]