American Express hired Cushman & Wakefield to weigh office options as the financial giant ponders its footprint in Manhattan and beyond.A huge amount of prime space is at stake, much of it at Brookfield Property Partners’ 200 Vesey Street.
the source told real American Express believes it needs about 1 million square feet, mostly in New York, but some could be located in cheaper cities where some of its remote employees moved during the pandemic. There is a nature.
The company has been at 200 Vesey Street, the massive Battery Park City Building in Brookfield Place, since it was planned by Olympia & York as a global financial center in the 1980s.
But the blue-chip corporate offices there are 40 years old, some of them rebuilt after 9/11, and they’ve had to do a lot to attract and retain talent, not to mention lure them into the workplace. needs a refresh. Amex is competing with technology companies and other financial firms that have moved to modern towers filled with shared spaces rather than the Warren of cubicles.
Cushman & Wakefield’s mandate is to investigate the merits of office sales, divestments, leasebacks, transfers, partial transfers, and even divestitures, and then possibly supervise leasing.
“Cushman & Wakefield was hired to research the value of the building, which could come with a lease agreement,” said one real estate executive.
Brookfield is the potential buyer and the broker’s job is to collect offers from suitable partners with whom Brookfield must win or live with.
If American Express sells, it could lease back the building and refurbish it on the spot, or perhaps move to a new separate property. You can even sublet another company’s space and later move it back to your own or a new building.
The possibility of signing an established anchor tenant presents an opportunity for developers looking to finance their office projects.
“Silverstein must be drooling,” said an industry insider of Larry Silverstein. 2 World Trade Center back on track“Employees are already familiar with the area, so it would be a great site for Amex.”
The chain of events that brought American Express to this point dates back to 1982 when it announced that it would lease space for the future World Financial Center in Olympia and York. The following year, American Express decided to own its headquarters there instead and signed a deal with Olympia and York.
A financial firm purchased a land lease for 3 World Financial Center, a 2.2 million-square-foot building designed by César Pelli, from Battery Park City.
At the same time, Olympia & York purchased American Express’ then-headquarters at 125 Broad Street for $160 million and leased it to Amex until Amex’s new Battery Park City building was completed. Upon completion in 1986, American Express and his then-subsidiary, Lehman Bros., paid Olympia & York his $478 million. (Lehman spun off in 1992)
When Olympia & York later went bankrupt, executives including Ric Clark founded Brookfield Financial Properties and took over the World Financial Center project, which was eventually renamed Brookfield Place.
After the 54-story pyramid tower on Vesey Street was severely damaged on September 11, 2001, Lehman moved uptown and sold half of the building to Brookfield Financial Properties. did. center.
American Express previously sold the master lease of the street-level and mezzanine retail space to Brookfield Properties, which owns all other retail space and the majority of the tower. Battery Park City’s land lease doesn’t expire until he 2069.
Both companies declined to comment or did not immediately return requests for comment.