JP Morgan Chase, the largest banking institution of the U.S., is reportedly contemplating on moving its New York City headquarters to a smaller space in the city.
People familiar with the matter told Bloomberg that JP Morgan is exploring options as to where it could shift its main office. Over the years, it has moved several back-end employees to Delaware, New Jersey and Florida to cut down on expenses and the latest plan is just another step towards minimizing costs.
Sources confirmed to The New York Post that JP Morgan is in talks with developers to look for the perfect office space, but asserted that the talks were just "exploratory". Sources, however, confirmed that the company was undergoing a "comprehensive" real estate strategy review right now.
The Post reports that JP Morgan has spoken with Related Cos, Brookfield properties and Vornado Realty Trust inquiring about their commercial property projects. It has also spoken with Larry Silverstein, the Port Authority and Durst Organization - developers of the new World Trade Center - to take up anchor space at the proposed 2 WTC building.
JP Morgan currently takes up 1.3 million square feet of space at 270 Park Ave. - a 707-foot tall glass building spanning 52 floors. The building was recently renovated and has a LEED platinum certification.
Bloomberg is speculating that JP Morgan might not do away with its space at 270 Park Ave., but notes that a decision to move would take years.
Last year, JP Morgan sold its Chase complex in Manhattan for about $725 million to Fosun International, the largest conglomerate of China. Located between Liberty, Pine, Nassau and William streets - One Chase Manhattan Plaza is one of the most important structures of the financial district and is the 43rd tallest building in the United States.
But its not just real estate that JP Morgan is selling. It recently sold half of its stake in One Equity Partners, a private equity firm, according to The Wall Street Journal.