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Amazon may be taking more office space in New York City following its demand that employees come back to in-person work five days a week.
Amazon is in talks to take more than 350K SF at 10 Bryant Park next year after HSBC vacates the building formerly known as HSBC Tower, the New York Post reported, citing anonymous sources.
The 30-story skyscraper is next door to the former Lord & Taylor building at 424 Fifth Ave., which Amazon bought in March 2020 for $1.2B to serve as the company's Manhattan headquarters for roughly 2,000 employees.
HSBC announced plans to relocate from the 865K SF 10 Bryant Park, which has an alternate address of 452 Fifth Ave., to Tishman Speyer’s The Spiral in Hudson Yards in 2022.
The building, owned by Israeli real estate firm Property and Building Corp., was 99% leased as of May but would be left with an anchor-sized hole when the bank relocates, Crain’s New York Business previously reported. HSBC's departure would leave the building nearly 40% vacant.
Amazon taking the entirety of that vacancy would be a major win for PBC, which has twice had deals lined up to sell the building in recent years, only for them to collapse as buyers couldn't line up financing.
The deal for HSBC’s space is being brokered by JLL, according to the Post. A spokesperson for the brokerage didn't immediately respond to Bisnow’s request for comment.
A September lease for private equity firm 17Capital in the Fifth Avenue tower had asking rents of $160 per SF, Commercial Observer previously reported.
Amazon’s push to return to in-person work comes as other tech companies make similar moves, stirring hope among office landlords that the tech industry may return to its prepandemic norms and start taking more space again.
Dell Technologies announced a five-day in-person work mandate shortly after Amazon, while OpenAI recently signed a 90K SF office lease in SoHo.
“We’re seeing green shoots in tech,” Savills Vice Chairman Scott Vinett said onstage at a Bisnow event earlier this month. “You see the OpenAI deal. We’re starting to see other folks in that same asset class looking for space now.”
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