JPMorgan Chase to Build New HQ Tower in Midtown
Real Estate In-Depth | February 21, 2018
NEW YORK—JPMorgan Chase announced plans on Feb. 21 to build a new 2.5-million-square-foot headquarters building at the site of its current headquarters location at 270 Park Ave. in Midtown Manhattan.
The plan, if approved, would be the first major project to be developed under the city’s Midtown East Rezoning plan that was approved last year.
The current 50-story, 1.5-million-square-foot 270 Park Ave. designed in the late 1950s currently accommodates approximately 3,500 employees. The building would be replaced by a larger more efficient headquarters building that could accommodate 15,000 workers.
Although the height for the new building has not been determined as yet, a JPMorgan Chase spokesperson says that current plans call for approximately 70 stories.
The new headquarters project was announced jointly by JPMorgan Chase and New York City. No development cost for the project was reported, although it is expected to create approximately 8,000 construction jobs.
JPMorgan Chase will purchase development rights from landmark properties in the surrounding district in order to build the larger building. Those transactions in the new East Midtown subdistrict will require the seller of the air rights to pay the city a minimum contribution of $61.49-per-square-foot that will be earmarked for improvements to the neighborhood, such as shared streets, pedestrian plazas and thoroughfare upgrades.
Once the project’s approvals are granted, demolition, redevelopment and construction are expected to begin in 2019 and take approximately five years to complete. Most employees currently located at 270 Park Ave. would be relocated nearby during construction, JPMorgan Chase states.
“At JPMorgan Chase, we believe that investing for the long-term is a hallmark of our success,” said Jamie Dimon, chairman and CEO of JPMorgan Chase. “With a new headquarters at 270 Park Ave., we are recommitting ourselves to New York City while also ensuring that we operate in a highly efficient and world-class environment for the 21st century.”
Mayor Bill de Blasio says the JPMorgan Chase investment underscores the importance of the recently enacted Midtown East Rezoning Plan. “This is our plan for East Midtown in action. Good jobs, modern buildings and concrete improvements that will make East Midtown stronger for the hundreds of thousands of New Yorkers who work here,” the mayor says.
Deputy Mayor for Housing and Economic Development Alicia Glen adds, “This is a true win-win-win. The City of New York retains a major company and its employment base, the surrounding community sees improvements in its public spaces, and JPMorgan Chase will have a new headquarters that helps the firm compete for decades to come.”
In 2012, JP Morgan Chase completed a major renovation of its global headquarters at 270 Park Ave. that earned it an LEED Platinum designation by the U.S. Green Building Council. JPMorgan Chase stated at the time that its renovation, which cut electric consumption by 50% and saved more than 1 million gallons of water a year, was considered the world’s largest renovation project to achieve the Platinum certification.