Macquarie seeks new Manhattan digs (after 53rd year of US profit)

The bank’s lease in the building expires in 2027, but there is a provision allowing it to break the lease in 2024.

There is no shortlist yet and the intended lease term is for up to 15 years at rentals in the range of $US70 to $US170 dollars per square foot. Such figures would mean a deal of as much as $US510 million.

While COVID-19 knocked office markets around in Manhattan, many top investment banks are encouraging employees to return to the office.

Macquarie moved to a hybrid working model in the US after the Labour Day holiday the first weekend in September, which means its employees now spend some time in the office and working remotely, or from home.

“Like other large-scale commercial tenants, Macquarie regularly evaluates its real estate leasing requirements to ensure we are in a building that best suits our needs and plans for future growth,” a Macquarie spokesman said.

“This process may involve discussions with real estate vendors, brokers and other market participants from time to time,” the spokesman said.

While the group’s office requirement is one of the larger office requirements in the market, it pales in comparison to some of the big moves in Manhattan with fintech company, Two Sigma, looking for 600,000 square feet of space, the City of New York seeking 500,000 square feet of space, and Templeton Funds in the market for 400,000 square feet.

Commercial property market sources said Macquarie would consider all locations in Manhattan but was unlikely to have an entirely new building constructed or stay on in its current location.

Last year, The Real Deal reported JP Morgan Asset Management, which owns the Avenue of the Americas Plaza, was looking to sell the property for $US550 million.

Macquarie’s international property needs have grown rapidly with international staff making up 54 per cent of overall employees up from 34 per cent about 15 years ago.

Macquarie has offices in New York, Georgia, Texas, Massachusetts, California, Pennsylvania, Colorado and Illinois, Tennessee and Florida.

It also has multiple offices in Canada, Mexico and more recently in Colombia, where last month it created an investment platform to manage an initial $US1.2 billion of road assets in the country.

Macquarie’s big drive in the Americas has been in infrastructure investing which started with former chief executive Nicholas Moore in the 1990s.

In August, one of Macquarie major infrastructure funds raised $US6.9 billion in capital.