Deutsche Bank shrinks footprint at future Columbus Circle home amid global downsizing

Observers say further cuts through subleases may follow

TRD New York /
Jul.July 16, 2019 10:00 AM
Related CEO Jeff Blau, Deutsche Bank CEO Christian Sewing, and Time Warner Center at 10 Columbus Circle (Credit: Getty Images and Wikipedia)

Related CEO Jeff Blau, Deutsche Bank CEO Christian Sewing, and Time Warner Center at 10 Columbus Circle (Credit: Getty Images and Wikipedia)

As it cuts 18,000 jobs worldwide amid a dramatic restructuring, Deutsche Bank is also scaling back on its future office space at Time Warner Center, more than a year before it’s scheduled to move in.

The German investment bank has exercised an option to return two floors at the building to the Related Companies, the New York Post reported citing sources. Though the two floors account for just 60,000 out of the company’s 1.1 million-square-foot lease, observers told the Post that further cutbacks through subleasing may be on the way.

Deutsche’s lease for its new home, signed last May, already represented a significant reduction from the bank’s current 1.6-million-square-foot footprint at 60 Wall Street, in which Singaporean sovereign wealth fund GIC now holds a 95 percent stake.

The firm will take possession of the space in January 2020, while relocation is expected to begin the following year.

The bank’s investment banking business has struggled in the wake of the financial crisis, and has more recently come under intense scrutiny for its decades-long ties with President Donald Trump. The recent job cuts represent about 1 in 5 jobs at the firm, with New York and London expected to be among the most heavily hit.

Meanwhile, commercial real estate lending has been one of Deutsche’s more profitable divisions, and industry insiders remain cautiously optimistic about the company’s commitment to that business. [NYP] — Kevin Sun


Related Articles

arrow_forward_ios
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

Related is the latest developer to target the Rockaways
Deutsche Bank CEO Christian Sewing and Deutsche Bank's Manhattan headquarters at 60 Wall Street (Getty)

Deutsche Bank: Employees can stay home until mid-2021

Deutsche Bank: Employees can stay home until mid-2021
President Donald Trump and Joseph Biden (Getty, iStock)

Real estate donors backing Biden over Trump

Real estate donors backing Biden over Trump
Tel Aviv Stock Exchange bull (Wikimedia Commons)

NYC developers face downgrades on Israeli bond market

NYC developers face downgrades on Israeli bond market
Related chairman Stephen Ross with President Donald Trump and Hudson Yards (Photos via Getty Images)

Stephen Ross dishes on Trump, NYC mayoral race

Stephen Ross dishes on Trump, NYC mayoral race
Related chairman Steve Ross and 35 Hudson Yards (Photos via Getty, SOM, MTA)

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut
Related CEO Jeff Blau (Blau by Andrew Lichtenstein/Corbis via Getty Images; iStock)

“Little bit of guilt trip”: Jeff Blau joins landlords pushing return to work

“Little bit of guilt trip”: Jeff Blau joins landlords pushing return to work
Jeff Blau and Hudson Yards (Getty, WIkipedia)

Hudson Yards’ EB-5 investors demand arbitration with Related

Hudson Yards’ EB-5 investors demand arbitration with Related
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...