BlackRock Plans Move to Manhattan's West Side
November 08 2016 - 7:30PM
Dow Jones News
The world's largest money manager plans to leave its current
Midtown Manhattan offices for New York's west side, according to
people familiar with the matter.
BlackRock Inc. is expected to take space in a planned office
tower known as 50 Hudson Yards, these people said. The building
site sits within a large new development along the Hudson River
built by Related Cos. and Oxford Properties Group. The asset
manager has also been considering another nearby tower developed by
Tishman Speyer, called The Spiral.
The firm's current lease expires in 2023. A spokesman said
"BlackRock has not made a final decision regarding its 2023 real
estate needs."
BlackRock 's search for about 850,000 square feet of space
represents one of the largest potential New York office deals at a
time when banks and other financial firms continue to shrink their
presence. Companies in those sectors represent about a quarter of
the city's office space, down from more than one third four years
ago, according to brokerage firm JLL.
A BlackRock team working on the search for new office space
heard final presentations from developers last week and could make
a final decision as soon as later this month, the people said.
A move across town would mark a shift from BlackRock's Park
Avenue origins. The $5.1 trillion asset manager was founded in a
single Park Avenue office as part of Blackstone Group in 1988 and
has had offices within four square blocks of that location ever
since. Today, it occupies several floors in two buildings on 52nd
Street between Madison and Park Avenue. Those buildings are owned
by Fisher Brothers and Rudin Management Company, Inc.
The average asking rent for high-end office space in midtown was
about $82 a square foot at the end of the third quarter, according
to JLL. By that figure the firm would spend about $69.7 million
annually, though rents are subject to market conditions and a
company's specific requirements.
Write to Sarah Krouse at sarah.krouse@wsj.com and Keiko Morris
at Keiko.Morris@wsj.com
(END) Dow Jones Newswires
November 08, 2016 19:15 ET (00:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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