It is not yet known how much, if any, space could become available due to the move. CB Richard Ellis exclusively handles Phillip Morris space at other sites in New York, and knows of no space availability at 120 Park. A spokesperson for Phillip Morris referred all questions to the company's original statement on its relocation decision.
Philip Morris execs estimate the relocation will result in annual savings in excess of $60 million and that the total cost of the relocation will be approximately $120 million, including compensation to those employees who do not relocate.
With its relocation to Richmond, Philip Morris is coming full circle, so to speak, by returning to a spot just outside of Richmond, the locale of the company's 1919 incorporation. Already the cigarette manufacturer has 6,800 employees in the area at various locations.
Situated on West Broad Street at the conveniently accessible intersection of Glenside Road and I-64, the property that will become the new corporate compound of Philip Morris USA got its start 45 years ago as the headquarters for Reynolds Metals. The five-story, 250,000-sf structure boasts a coveted spot on the National Register of Historic Places and will undergo only minor upgrades to accommodate its new occupant.
Philip Morris committed to leasing the corporate campus from the University of Richmond--which acquired the property from Reynolds Metals buyer Alcoa in 2001--on Feb. 28 of this year, and announced its decision to relocate just days later in March. The facility, which is just a few miles from the company's gargantuan cigarette-manufacturing plant in Henrico County, has sat vacant since the Alcoa takeover of Reynolds Metals in 2000.
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