(Bloomberg)—KPMG LLP is relocating its US headquarters to the far west side of Manhattan, while cutting its office space in New York by more than 40%.
The global auditing firm has signed a lease for roughly 450,000 square feet (42,000 square meters) across 12 floors at Two Manhattan West, a skyscraper that’s under construction in the Hudson Yards area, according to a statement Tuesday. The offices will house more than 5,500 employees, KPMG said.
The new space is a reduction from the roughly 800,000 square feet that KPMG currently leases across three towers in Midtown: 345 Park Ave., 560 Lexington Ave. and 1350 Sixth Ave. The firm plans to leave those buildings.
Manhattan’s office market has taken a hit during the pandemic, with the supply of available space hitting record levels. Companies have been re-evaluating their real estate needs in the hybrid-work era, and those in the market for new offices are gravitating toward newer developments.
While a few finance and tech firms have been expanding their footprints, others have cut back on space. HSBC Bank USA signed a lease in the Hudson Yards district that represents less than half of its current space in Midtown.
Two Manhattan West -- a 58-story, 1.9 million-square-foot-tower being developed by Brookfield Properties -- landed law firm Clifford Chance as a tenant earlier this year. The building’s completion is expected by early 2023.
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