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CIBC to Consolidate HQ in 850,000 SF of New Tower

NEW YORK CITY-Mayor Giuliani has announced Canadian Imperial Bank of Commerce World Markets will anchor Brookfield Properties' development at 300-310 Madison Ave. The lease is the result of negotiations with the city.

By Amy Vaughn | Updated on March 22, 2001

NEW YORK CITY-After negotiations with the New York City Industrial Development Agency, Canadian Imperial Bank of Commerce World Markets has decided not to relocate its headquarters out of Manhattan, and has instead signed an 18-year lease in Midtown. The company has signed for approximately 850,000 sf in 300-310 Madison Ave., a Brookfield Properties development. As part of the agreement, CIBC will retain its 2,712 jobs here and will possibly add 2,800 in the future.

CIBC will move its employees out of its four current Manhattan locations, which include 500,000 sf at 1 World Financial Center, and will consolidate all of its offices in the new 1.2 million sf building when it is ready to occupy in 2004. The company will receive $13.6 million net present value in sales tax exemptions for expenses. It is also eligible for an estimated $2.44 million net present value in discounted energy from Con Edison’s Business Incentive Rate.

These incentives are contingent upon the retention of the employees here and CIBC must repay these should they reduce their staff figures before the 18-year lease ends. Also, it will be eligible for a maximum of $15.9 million NPV in additional sales tax exemptions if it certifies it has added jobs above its retention base of 2,172.

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