Doublewide cubicle? Citigroup eyes suburban offices so workers can spread out

The banking giant’s employees have been working from home since March

National /
May.May 20, 2020 03:30 PM
Citigroup CEO Michael Corbat (Credit: Getty; iStock)

Citigroup CEO Michael Corbat (Credit: Getty; iStock)

Some industry pros have speculated that the coronavirus pandemic would push companies out of dense cities and into the suburbs. Now, some big companies are making the move.

390 Greenwich Street (Credit: Beyond My Ken via Wikipedia)

Citigroup headquarters at 390 Greenwich Street (Credit: Beyond My Ken via Wikipedia)

Citigroup, which in recent years relocated its headquarters to Tribeca, is exploring options for short-term leases for suburban offices outside New York City, according to Bloomberg. The banking giant is considering furnished spaces ready to be occupied in Long Island, Westchester County and New Jersey.

The company’s employees have been working from home since March and Citigroup hasn’t set a date for them to return to offices.

Though the move likely won’t be permanent, it is a sign that demand could jump for suburban offices — at least in the short term. Opening temporary offices would let them put their employees back to work, but spread them out to reduce the risk of spreading coronavirus.

Office landlords including RXR Realty and Rubenstein Partners are fielding calls from financial institutions for those properties. Rubenstein Principal Brandon Huffman said commuting is a major concern.

“There’s an overwhelming number of employees that need mass transit to access the urban environment,” he said. “Nobody knows how that’s going to work in a social-distancing world.”

Landlords are also redesigning their urban spaces to allow employees to maintain social-distancing measures. Co-working offices are expected to get a significant overhaul.

JPMorgan Chase expects to keep its offices at just 50 percent capacity for the foreseeable future, while Morgan Stanley CEO James Gorman has said he sees a future with “much less real estate.” [Bloomberg] — Dennis Lynch


Related Articles

arrow_forward_ios
New Philippine tax on foreign gaming companies could deal another blow to office market
New Philippine tax on foreign gaming companies could deal another blow to office market
New Philippine tax on foreign gaming companies could deal another blow to office market
Office workers in major cities reach pandemic-best return rates
Office workers in major cities reach pandemic-best return rates
Office workers in major cities reach pandemic-best return rates
Office tenants nationwide are touring buildings at record numbers for the pandemic (Getty)
Tenants rushing back to tour offices, but things still far from normal
Tenants rushing back to tour offices, but things still far from normal
Nearly 100K homes sold across UK in August ahead of tax break expiration
Nearly 100K homes sold across UK in August ahead of tax break expiration
Nearly 100K homes sold across UK in August ahead of tax break expiration
Eviction Notices (iStock)
Westchester County leads state in evictions outside NYC
Westchester County leads state in evictions outside NYC
New York state is also contributing $125 million toward rent relief from the budget. (iStock)
On Long Island, family of 4 earning $156K qualifies for rental assistance
On Long Island, family of 4 earning $156K qualifies for rental assistance
Covid surge dims enthusiasm for ICSC Vegas conference
Covid surge dims enthusiasm for ICSC Vegas conference
Covid surge dims enthusiasm for ICSC Vegas conference
US office investment market remains well below 2019 levels
US office investment market remains well below 2019 levels
US office investment market remains well below 2019 levels
arrow_forward_ios

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

Loading...