NEW YORK CITY—JPMorgan Chase & Co., the biggest US bank, is considering moving its headquarters within New York as the company has shrunk its headcount here, a person briefed on the discussions tells Bloomberg News.
The potential plans, which include taking office space in Manhattan developments at the World Trade Center or Hudson Yards, are in early stages and no decision is imminent, said the person, who asked not to be identified because the talks are private. JPMorgan has moved back-office jobs to New Jersey, Delaware and Florida to cut expenses, the person says.
Banks, under pressure to boost returns, have been seeking lower-cost locations for employees who don't interact directly with clients. JPMorgan is examining its property holdings in New York, where it had 11.4 million square feet (1.1 million square meters) at the end of 2013, including 1.3 million at its 270 Park Ave. headquarters.
JPMorgan sold its 60-story skyscraper at 1 Chase Manhattan Plaza last year to Shanghai-based Fosun International Ltd., and began moving 2,000 employees to offices in Brooklyn's MetroTech Center this year. JPMorgan owns the Park Avenue building as well as the former headquarters of Bear Stearns Cos. at 383 Madison Ave., which it acquired in 2008.
The bank may keep 270 Park and take some space in new projects, or it could opt to refurbish the Madison Avenue building, according to Bloomberg. Any decisions probably won't result in moves for several years.
Citigroup Inc., the third-biggest US bank, will move its New York headquarters from 399 Park Ave. to buildings it occupies on Greenwich Street in lower Manhattan. The bank will leave the Park Avenue building when its lease expires in 2017.
Bank of New York Mellon Corp., the world's largest custody bank, agreed in May to sell its headquarters at 1 Wall St. to a joint venture led by Macklowe Properties for $585 million. BNY Mellon is moving to Brookfield Place, the lower Manhattan complex formerly known as the World Financial Center.
Other banks have relocated jobs out of New York, including Goldman Sachs Group Inc., which added personnel in Dallas and Salt Lake City. JPMorgan CEO Jamie Dimon said at an economic summit in Miami last year that Florida has more business-friendly policies than New York, and he joked that he sometimes wonders why the company doesn't move to Miami.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
