Blackstone Plots Major Expansion Of NYC Office Space
Private equity giant Blackstone is one of America’s largest landlords, and it’s among a handful of financial behemoths (another being similarly named BlackRock, the world’s largest asset manager with more than $9 trillion AUM) that have helped drive the real-estate frenzy that’s sent home prices soaring over the past couple of years, a trend that’s only now just beginning to fade.
Unfortunately for Blackstone, many firms are embracing the work-from-home lifestyle, which has left investors in commercial real-estate (especially in NYC) in the lurch, as they struggle to find tenants.
In the face of this trend, the firm has found an interesting strategy to try and shore up demand for commercial office space in the Big Apple. It’s looking to expand its office footprint, as the firm pushes its employees to return to the office full-time.
Here’s more from Bloomberg:
The New York-based private equity firm is hunting for roughly 1.5 million square feet (140,000 square meters) of space as it considers relocating from its longtime headquarters on Park Avenue, according to people familiar with the matter.
As it explores its options, Blackstone is looking at sites across Manhattan and could opt to redevelop a building given how much space it needs. The firm may also end up expanding at 345 Park, one of the people said. The building, owned by Rudin Management Co., has housed the firm more than 30 years.
To be sure, Blackstone isn’t the only firm plotting a major expansion of office space in NYC. Ken Griffin’s Citadel is also looking for more space in Manhattan, as are a handful of tech firms.
It’s a strategy that we imagine other corporate landlords may embrace, especially if demand for office space remains lackluster in the years ahead. Struggling to find tenants? Maybe try renting to yourself.
Tyler Durden Sat, 03/26/2022 – 17:00