Financial giant State Street
The Boston-based firm, known for its 'Fearless Girl' statue outside the New York Stock Exchange, plans to close its two Midtown Manhattan offices at 1040 Avenue of the Americas and the 10th floor of the 1290 Avenue of the Americas, the Wall Street Journal reports. State Street's New York-based staff will work remotely or from branches in New Jersey and Connecticut, and the company plans to offer employees a shared office space. The company also expects to sublease the two offices to other companies, according to WSJ.
State Street is one of the world's largest asset managers, with the shift away from office space in NYC impacting about 500 employees at the firm's custody bank and money-management businesses, WSJ reports.
"We absolutely see the value for having physical space in the area that serves as a hub for employees and clients in the NYC area," according to the State Street statement, quoted by Bloomberg. "But we also know this is a tremendous opportunity to reimagine and redesign the workplace in a very fit-for-purpose way that improves performance, productive and our employees' experience."
Many firms are re-evaluating their office space in NYC after more than a year and a half of remote work since the start of the coronavirus pandemic. Large employers like BlackRock
With State Street's departure, many Midtown Manhattan landlords are likely becoming more anxious that this may spark a new trend as the pandemic continues into the colder months of the year. Manhattan's office availability rate was 17.1% in July, according to NYC real estate news outlet The Real Deal, with last month matching the record-high set in May. The average asking rent was $72.72 per square foot, down roughly 8% from a year ago and marking the lowest level since 2017.
