What You Need to Know
- Its New York-based staff will work remotely or from buildings in New Jersey and Connecticut.
- Financial firms and others are reevaluating their New York real estate footprints after more than a year of remote work.
- State Street has been considering whether or not to renew its Manhattan leases since at least February.
State Street Corp. will leave its two New York City offices, making good on plans to transition its Manhattan-based staff to a hybrid work model.
The Boston-based firm plans to close its two midtown Manhattan offices, the company said Monday in a statement. Its New York-based staff will work remotely or from buildings in New Jersey and Connecticut.
Financial firms and other companies are re-evaluating their real estate footprint in New York after more than a year of remote work. Office supply continues to set records and large employers including BlackRock Inc. and Wells Fargo & Co. have delayed plans to return to offices as the Covid-19 delta variant spreads. Just 23% of office workers have returned to their desks in the New York metro region as of Aug. 11, according to data from Kastle Systems.
“We absolutely see the value for having physical space in the area that serves as a hub for employees and clients in the NYC area,” according to the State Street statement. “But we also know this is a tremendous opportunity to reimagine and redesign the workplace in a very fit-for-purpose way that improves performance, productivity and our employees’ experience.”