JP Morgan mulls head office move

JP Morgan Chase, the biggest US bank, is considering moving its headquarters within New York as the company has fewer employees in the nation's largest city, according to a person briefed on the discussions.

The potential plans, which include taking office space in Manhattan developments at the World Trade Centre or Hudson Yards, are in early stages and no decision is imminent, said the person, who asked not to be identified because the talks are private. JP Morgan has moved back-office jobs to New Jersey, Delaware and Florida to cut expenses, the person said.

Banks, under pressure to boost returns, have been seeking lower-cost locations for employees who do not interact with clients. JP Morgan is examining its property holdings in New York, where it had 1.1 million square metres at the end of 2013, including 120,774 square metres at its 270 Park Avenue headquarters.

JP Morgan sold its 60-storey skyscraper at 1 Chase Manhattan Plaza last year to Shanghai-based Fosun International, and began moving 2,000 employees to offices in Brooklyn's MetroTech Centre this year. JP Morgan owns the Park Avenue building as well as the former headquarters of Bear Stearns at 383 Madison Avenue, which it acquired in 2008.

The bank may keep 270 Park and take some space in new projects, or it could opt to refurbish the Madison Avenue building, said the person. Any decisions probably will not result in moves for several years, the person said. The New York Post reported details of JP Morgan's plans earlier yesterday.

Citigroup, the third-biggest US bank, will move its New York headquarters from 399 Park Avenue to buildings it occupies on Greenwich Street in lower Manhattan, chief executive Michael Corbat said in April. The bank will leave the Park Avenue building when its lease expires in 2017.

Bank of New York Mellon, the world's largest custody bank, agreed in May to sell its headquarters at 1 Wall Street to a joint venture led by Macklowe Properties for US$585 million. BNY Mellon is moving to Brookfield Place, the lower Manhattan complex formerly known as the World Financial Centre.