With its lease set to expire in 2023, asset management giant BlackRock is deciding between three Manhattan sites for its new global HQ.
BlackRock's 850k SF lease will be one of the city’s largest signed in 2016. There are few sites large enough to accommodate the firm, which made a $3.3B net profit in 2015, according to the Wall Street Journal.
After taking a look at SL Green’s One Vanderbilt, BlackRock is considering spaces at The Related Cos’ Hudson Yards and Brookfield Property Partners’ nearby Manhattan West.
The $4.9 trillion money manager is currently taking up 700k SF in two buildings on 52nd Street, but its staff has grown from 5,341 to 13,000 since 2008.
The firm’s success comes from a variety of factors, including smart acquisitions, shifting economic and regulatory conditions, and stronger investor interest as banks and hedge funds struggle.
Banks, once a main driver of NYC leasing activity, have decreased their footprint 28%, taking up 13M SF less than they were in 2008. Hedge funds—one of the biggest lessees of high-profile offices after the financial crisis—have downsized as well.
BlackRock is expected to make its decision by the end of the year. [WSJ]
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