JPMorgan Chase will exit nearly three quarters of its offices at a trophy tower in Downtown San Francisco.
The New York-based bank plans to vacate 244,000 square feet at a 38-story office tower at 1 Front Street, in the Financial District, the San Francisco Business Times reported. It will shrink the company’s footprint by 70 percent.
The offices were formerly occupied by First Republic Bank, among three leases JPMorgan assumed when it acquired the struggling bank last year.
In May last year the Federal Deposit Insurance Corporation seized the San Francisco-based First Republic Bank, then sold it to JPMorgan Chase for $10.5 billion. It was the second-largest bank failure in U.S. history.
JPMorgan’s lease at the tower known as One Front Street, owned by New York-based Paramount Group, expires in June. Paramount listed the offices last month as available come July.
The downsizing will come as a blow to Paramount, according to the Business Times. The 667,100-square-foot trophy office tower, built in 1979 at Front and Market streets, was once known as Shaklee Tower and has sweeping views of the Golden Gate and Bay bridges.
Before its collapse last year, First Republic was Paramount’s largest single office tenant, leasing nearly 460,000 square feet at One Front Street, according to Paramount’s annual report for 2022.
JPMorgan shed 117,000 square feet of the offices after it acquired First Republic, shrinking the bank’s former footprint to 344,010 square feet.
After its lease expires for the 244,000 square feet at One Front Street, JPMorgan will have 102,000 square feet of offices left in the building across two leases that end in 2029 and 2030.
This month, the bank opened a new branch for its J.P. Morgan Private Client next door at 111 Pine Street, according to the Business Times.
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JPMorgan is working to squeeze some of First Republic’s former employees into its long-time offices at 560 Mission Street, an unidentified source told the newspaper. It’s unclear how many employees will make the move.
This spring, Google confirmed it wouldn’t re-up its lease for 300,000 square feet of waterfront offices at the three-building One Market Plaza at 1 Market Street, on the Embarcadero, which ends in April. The 1.6 million-square-foot complex is owned by Paramount and Blackstone.
— Dana Bartholomew