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November 29, 2022

Real estate

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EY Survey Ironically Finds the Four-Day Workweek is the New Standard at Many Companies

According to the latest EY Future Workplace Index survey, many companies are moving toward a four-day workweek thanks in part to competition for talent. The survey reveals surprisingly optimistic attitudes from company leadership on real estate investment despite economic tightening, says the press release, a sign that employers want you back in the office at […]

close up of a person carrying moving boxes

ICYMI: KPMG Is Downsizing Its NYC Digs Big Time

KPMG announced last week it will relocate its headquarters to Two Manhattan West, a new building in Midtown Manhattan’s West Side slated for completion in 2023. The new digs mean a huge 40% reduction in NYC office space, signaling the firm expects hybrid work to persist for the foreseeable future and then some (sorry, Boomers). […]

Deloitte CEO Joe Echevarria Doesn’t Want to Hear About the Troubles You’ve Had Selling *Your* House

As you may recall, after Joe Echevarria became CEO of Deloitte in 2011, we learned that his house in Westchester was up for grabs with an asking price of $2.8 million. The 6,000 square-foot spread had hit the market in March of that year listed at $3 mil, so you can safely assume that Joe and his wife Ana were anxious to move the thing.

Deloitte Is Moving to 30 Rock

We’re still waiting for Jim Quigley’s tweet to confirm but it appears, based on an internal email sent to Going Concern, that Deloitte will be consolidating its offices to 30 Rockefeller Center.

Here’s our tipster’s email:

[I]t appears that they will be going public with this in the next couple of days. D&T is consolidating its three New York offices into 12 floors of Rock Center. The sublease from Merrill Lynch at 2 WFC is up next year and apparently [Bank of America] wanted to raise rents on them. The consensus is that there is just too much space that isn’t getting used and that consolidating the offices would be a more efficient use of the space.

Regards,

“Anonymous Tipster”

And here’s the internal email:

The only attention we’ve really paid to the Deloitte commercial real estate story is that they were threatening to leave the City altogether last summer but DWB debunked that theory sufficiently. This not only marks a major move for Deloitte but it also is a major new tenant at 30 Rockefeller Center. But why is so much sprawling cube farm space available at 30 Rock? Is this a result of Comcast’s purchase of NBC Universal from General Electric or is Jack Donaghy holding a fire sale? We don’t know the real estate business well enough to give it an educated guess so if you’ve got other theories, leave them below. We left a message with Deloitte but Christ, it’s after 9 pm on Friday, so we’ll back to you Monday.

What if Deloitte Moved Out of New York City?

What happens when you’re the Prized Catch of the New York City real estate market? You threaten to move your operations to New Jersey or Connecticut, of course!

Per a report on GlobeSt.com: “According to IDA documents, Deloitte notes that it is ‘currently assessing options’ for its metro area real estate strategy, ‘including the evaluation of existing in New York, New Jersey and Connecticut.’”

One could assume that this is just a ploy by Deloitte to frighten the IDA into approving $21 million in tax benefits, but Deloitte – currently in four different buildings around the city – bit back with teeth:

In New Jersey, Deloitte US firms “have significant operations, including recently expanded, underutilized class A office space.” Similarly, Deloitte has more than 30,000 square feet of “underutilized” office space in Connecticut, and adds that “various other jurisdictions are being considered” for future growth.

Now before you East Village wannabe socialites and Park Slope stroller pushers freak, let’s break this down.

Deloitte isn’t going anywhere. Corporate Tax breaks are nothing new, right baseball fans?

Even if it were to move across the Hudson to New Jersey, it is doubtful the firm would go farther than Jersey City. Sure, there are comrades in Parsippany; but it would be very difficult to maintain a city presence from exit 45 off of Rte 80. But from a staffing perspective, this would be corporate suicide. What University of Texas (“at Austin” – sure, sure) graduate wants to move to New York City and Not. Actually. Be. In. New York. City?

Recruitment – shot.

Talent retention – HAHAHA.

A handful of current employees thankful their NJ Transit days are over – okay, I’ll give you that one.

Listen – in reality, this is a rather simple case. Manhattan is bleeding vacant office space; Deloitte is promising 2,100 new jobs; no one really wants to take the PATH train to work every morning. This should be a rather slam dunk case.

Unless, of course, Connecticut governor Jodi Rell catches wind that the Green Dot is looking for a new home.