Financial giant State Street is the latest company to close two offices in Manhattan. The company is now rethinking how to adapt physical locations for New York workers to work from home.
The company based behind the Fearless Girl Statue on Wall Street allows 500 New York workers to work from home or in a new shared workspace. The financial services company commissioned a Fearless Girl Statue for International Women’s Day in 2017.
Now, State Street will close its 106,000 square feet offices to open a coworking space. With an average price of $ 70 per square foot, State Street’s monthly rent is stable at $ 7.4 million. The plan to sublease space worth $ 315 billion will affect over 500 New York employees. The company is redesigning its physical space to allow physical meetings and flexible working schedules.
Approximately, the company owns $ 315 billion in assets. Previously, State Street announced plans to reduce 1,200 jobs (3% of the workforce). Now, it’s redesigning the office space to save on rent and allow hybrid models.
As State Street spokesman Edward Patterson said: “We have taken a diligent look at our real-estate footprint in NYC […] ensuring that our realty needs are in line with where our employees will be working.”
The financial company pivots to new solutions to face the challenges of the pandemic’s recovery. Several New York firms question whether Big Apple’s costs are worthed. Most of them are slowing down the return to the office for hybrid models.