The world's largest money manager, BlackRock Inc., is gearing up to make a huge move: the company is looking to find a new headquarters in New York, as a source claims that the company is expecting to outgrow its two current offices near Park Avenue.
The source, which remains unidentified for confidentiality purposes, said that the firm has already requested for proposals to real estate brokers, in an effort to find an office space spanning 1 million square feet (93,000 square meters).
However, nothing is set in stone. The insider also noted that BlackRock might just stay where it is already residing. BlackRock spokeswoman Olivia Offner issued a statement, which vaguely confirms the allegations:
"In anticipation of our current campus lease expiring in 2023, we are prudently planning for our long-term real estate needs in New York City."
Obtaining a new headquarters would give BlackRock a much more powerful position in the real estate industry. Bloomberg reports:
"A deal for 1 million square feet would be among the largest for a New York company in the past couple of years and would make BlackRock a candidate to anchor one of Manhattan's newest skyscrapers. Towers are under construction or planned at the Hudson Yards development zone on the far west side, at the World Trade Center in lower Manhattan and on Midtown's east side. There are also large-enough vacancies in existing buildings, such as at 4 Times Square and in 1271 Avenue of the Americas, the former Time & Life Building, that might accommodate the firm."
Meanwhile, the search for a large office space means greater prospects for the other side of the spectrum in real estate.
"A firm like BlackRock, looking for a million square feet at once, should have the brokerage community as well as the development community salivating," said Aaron Jodka, the senior manager for market research at CoStar Group Inc. "A big credit tenant - investors want that."