KPMG to Cut NYC Office Space at New U.S. Headquarters

By Natalie Wong, Bloomberg News (TNS)

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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