JPMorgan Bets Big On Silicon Valley With Plans To Build New Fintech Campus
New York-based banking giant JPMorgan Chase & Co. is planning to enter the nation's tech mecca with a new financial tech hub.
JPMorgan's Silicon Valley campus will be in Stanford Research Park on the site formerly occupied by Lockheed Martin at 3223 Hanover St., Palo Alto Online reports. Palo Alto has low availability and high office rents, according to Savills Studley's Q3 2018 office report. Asking rents were $7.95/SF for Class-A office space in Palo Alto, the highest in Silicon Valley, which averaged $4.31/SF for Class-A rents.
JPMorgan Chairman and CEO Jamie Dimon has long been a strong advocate of the Silicon Valley tech market, even predicting its continued growth in 2015 due to the launch of hundreds of startups funneling unprecedented amounts of capital into the area. The investment bank has invested heavily in tech over the years to remain competitive and increase its online presence to appeal better to millennials; it now boasts a team of more than 50,000 tech employees.
Development is slated to commence in early 2019, and the new fintech campus will open in 2020.
JPMorgan Chase is the largest bank in the U.S. in terms of assets. The bank reportedly relinquished its title as the largest office occupier in New York City to WeWork earlier this year, thanks to a deal the coworking giant struck to lease 258K SF at TH Real Estates’ 21 Penn Plaza, bringing its total space in the city to around 5.3M SF.