Wells Fargo & Co (NYSE:WFC) Evaluating Options For New Space In Manhattan

Some of the large banks in the United States have started to see sunny days as they are going back to the old good days. Among these large banks is Wells Fargo & Co (NYSE:WFC), which after announcing a robust quarterly dividend to its investors is ready to move into a big place. After years of recovering from the financial crisis, the bank is finally scouting for new locations in Manhattan, a place which was once flooded by the offices of U.S. major banks.

Learn what the indicators are telling the analyst about WFC.

Hunting space in Manhattan

As per the information, Wells Fargo & Co (NYSE:WFC) wishes to book 300,000 square feet of are in the location, where it will place its most productive investment bankers. Not just Wells Fargo, but other big financial players too are keen on coming back to Manhattan. The trend is confirmed by Colliers International’s Tri-state regional president, Michael Cohen, who said that the banks are hunting for space. He said that the banks are looking for space that will let them shrink their footprint to control costs, place employees from far-off locations or simply update their old-fashioned offices.

Normal practice

Meanwhile, according to Marc Holliday, CEO of SL Green Realty Corp, lease expirations could be a major factor in play to push banks look for a comeback in the Manhattan area. As per people close to the information, Wells Fargo & Co (NYSE:WFC) is weighing in options for taking a 200,000 to 300,000 square feet of space. However, the bank will continue to keep its office at Socony Mobil Building on East 42nd Street, where it currently occupies 372,000 square feet.

The bank is evaluating options at three of its New York Office locations, where leases are due to expire in 2021. The bank’s spokesman, Kevin Friedlander said that the market inquiry and evaluation of real estate portfolio is consistent with its normal practices. He added that the process is normal when leases are soon to expire.

About the Author

Cooper is a graduated from Buffalo State College in New York with a bachelor's degree in Broadcast Journalism.

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