President-elect Donald Trump has promised to cut corporate taxes and reduce business regulation, which could give the financial sector a major boost after years of dampened employment.
As such, several financial giants approaching the end of their leases are looking to upgrade spaces while keeping costs low, the Wall Street Journal reports.
The main reason for this price consciousness comes from the fact that banks are still closely monitoring expenses, meaning firms need spaces that can accommodate three to five years' worth of growth while not disrupting cost structures. Firms have also been consolidating and densifying their office spaces, reducing footprints.
Some examples of the trend include JPMorgan Chase’s relocation to Jersey City for tax incentives, Wells Fargo Securities and KKR’s leases at 30 Hudson Yards, and BlackRock’s plans to take 850k SF at 50 Hudson Yards (pictured).
AllianceBernstein and HSBC are also rumored to be looking at properties. Alliance’s 600k SF lease at 1345 Sixth Ave ends in 2024, but, since a move-out could take years, the firm has reportedly checked out Hudson Yards, 4 Times Square and 1271 Sixth Ave. HSBC’s lease expires in 2020. [WSJ]
