While the decision appears to be due to cost-cutting measures in the company, State Street spokesperson Alyson Riley, insists the decision is only indirectly related to the recent economic downturn's impact on the company. "We don't have the need for the space at this point," Riley tells GlobeSt.com. "The decision reflects a change in our staffing needs right now. We have a slower pace of hiring due to the economy." Riley emphasizes that the decision does not mean there will be layoffs.

Riley points out that the company leased the 235,000 sf of space in a tight real estate market because it was available--a practice she says is commonly done at State Street. She notes that earnings for the company were up 13% this past quarter but recently David A. Spina, State Street's CEO, reportedly warned both employees and investors that the company faces some serious expense cutting.

Riley declined to disclose the company's lease rate at the building but unconfirmed estimates put the figure at about $30 per sf. State Street is using Spaulding & Slye Colliers as its broker and they are marketing the space for $32 per sf.