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(Bloomberg)—HSBC Bank USA has agreed to move its headquarters to a tower that’s nearing completion in Manhattan’s Hudson Yards district.
The U.S. subsidiary of the London-based bank has signed a 20-year lease for 265,000 square feet (24,620 square meters) at the Spiral, a 65-story skyscraper that’s being built by Tishman Speyer, according to a statement Monday. HSBC expects to relocate from its current offices, at 452 Fifth Ave., in January 2024.
The bank’s space will span three floors, with a two-tier outdoor terrace offering views of the Hudson River. HSBC also will open a street-level wealth center at the property, located at 66 Hudson Blvd. near West 35th Street.
“We believe it is the right time to relocate our hybrid workforce to a headquarters designed for the future,” Michael Roberts, HSBC’s U.S. and Americas chief executive officer, said in the statement. “This new space demonstrates our commitment to the U.S. and is an investment in strengthening our employee and customer experience.”
The move also will bring the company closer to its sustainability goals through an expected 60% reduction of the bank’s total energy consumption, according to the statement.
Bloomberg reported in January that HSBC was in talks for offices at the Spiral. The deal is one of the biggest bank leases in Manhattan since the pandemic started. Earlier this year, Morgan Stanley agreed to take roughly 400,000 square feet of additional space in Midtown.
HSBC, which is cutting costs, has said it aims to shrink its real estate footprint worldwide by 40%. The bank said in September that it expects a permanent shift toward hybrid work. The Spiral lease represents less than half of HSBC’s current space in Midtown, where the bank has about 548,000 square feet.
Companies in the market for space have been favoring buildings that are newly built or have been redeveloped, with a focus on employee-friendly features and easy access to transportation. Citadel, Blackstone Inc., Verition Fund Management and Meta Platforms Inc. are among firms that have either signed leases recently or have been exploring an expansion in the city.
The 1,031-foot (314-meter) Spiral is 70% leased to companies including Pfizer Inc., which will have its global headquarters at the tower, law firm Debevoise & Plimpton LLP and AllianceBernstein Holding LP. The building has 2.8 million square feet of offices and retail space, with cascading terraces and hanging gardens. Tenants are expected to start moving in by summer.
Brokers at Jones Lang LaSalle Inc. represented HSBC in the transaction.
To contact the author of this story: Natalie Wong in New York at [email protected]
© 2022 Bloomberg L.P.
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