The decision by JPMorgan Chase to keep its headquarters on Manhattan’s Park Avenue saves the Midtown neighborhood from what would have been a deep blow.
Bloomberg News reports that the biggest U.S. bank occupies about 11% of the office space in the submarket, and about 3% of the larger area surrounding Grand Central Terminal, according to data from Cushman & Wakefield Inc. A departure by JPMorgan theoretically could have driven the vacancy rate on Park Avenue to as high as 26% from the current 15.2%, the brokerage said.
JPMorgan two days ago reversed course and broke off talks to move its headquarters to the Hudson Yards district on Manhattan’s far west side, which would have greatly accelerated development in that area. The bank would have joined Time Warner Inc., luxury-handbag maker Coach Inc., cosmetics maker L’Oreal SA and the city’s first Neiman Marcus department store, all of which have agreed to take space in the once-gritty industrial zone near the Hudson River.
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