JPMorgan Chase to demolish New York City building, build new headquarters
Staff Writer |
JPMorgan Chase announced that the company intends to pursue building a new 2.5 million square foot headquarters at its 270 Park Avenue location in New York City.
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The building would be the first major project under the City’s innovative Midtown East Rezoning plan, passed in 2017, that fosters modern office construction and improvements to the business district’s public realm and transportation.
The project will be subject to various approvals, and the company will work closely with the New York City Council and State officials to complete the project in a manner that benefits all constituencies.
Under the East Midtown rezoning, JPMorgan Chase will purchase development rights from landmarks in the surrounding district in order to build a larger building.
Any such transactions in the new East Midtown subdistrict require the seller of the air rights to pay the City a minimum contribution of $61.49 per square foot, providing funding for improvements to the neighborhood’s public realm including shared streets, pedestrian plazas and thoroughfare upgrades.
With the new, modern facility, which is expected to create over 8,000 construction-related jobs during the building period, JPMorgan Chase would consolidate its global headquarters from a variety of locations into a fully LEED-certified, energy-efficient office tower in Midtown Manhattan.
The headquarters project would build on the firm’s strong legacy of investment in local communities and the City of New York, its home since 1799.
The building’s modernized infrastructure and design, including 21st century systems and technology, would allow for improved business adjacencies, synergies and collaboration.
Clients, shareholders and the surrounding community would benefit from this innovative project, which would also support the firm’s commitment to attracting and retaining best-in-class talent.
The new building would house about 15,000 employees, replacing an outdated facility designed in the late 1950s for about 3,500 employees.
Once the project’s approvals are granted, redevelopment and construction are expected to begin in 2019 and take approximately five years to complete. Most employees currently located at 270 Park Avenue would be relocated nearby during the development period.
With this headquarters commitment, JPMorgan Chase expects to remain one of the largest private employers in New York City. The company also employs thousands of others in additional NYC Corporate locations and in approximately 350 bank branches.
Regarding jobs related to the new project, the company intends to work closely with its Supplier Diversity team to encourage the participation of Minority and Women Owned Business Enterprises (MWBEs).
The project is not expected to have a material impact on the company’s financial results. ■