With UBS deciding to maintain a smaller workforce in Stamford for the immediate future, the city finds itself potentially with prize office space to offer prospective corporate tenants ”“ including those in New York City.
The Swiss bank has committed to an employee base of 2,000 workers in its main Stamford office building and trading floor on Washington Boulevard. Mayor Michael Pavia acknowledged the decision likely makes adjacent UBS offices on Tresser Boulevard superfluous for the financial giant ”“ possibly giving the city an opportunity to draw a significant New York City employer.
UBS has used the buildings at 400 Atlantic St. and One Stamford Forum as overflow offices, taking space in the former building originally leased by American Express and cohabiting with Purdue Pharma L.P. at the latter address. In the past few years, Purdue Pharma relocated its headquarters to north Stamford, only to return to its Tresser Boulevard offices as demand surged anew for its pain medications.
In late August, UBS said it would maintain a minimum workforce of 2,000 people in Connecticut, after accepting a $20 million loan from the state that will be converted to a grant if it meets its employment vow through 2017, when its lease expires.
After that, all bets are off ”“ but if the economy is in expansion mode nearing that date, it is possible UBS would extend its lease or ink a new one to keep a presence in Connecticut.
Philip Lofts, CEO of UBS Group Americas, downplayed earlier reports that the bank had considered leaving Connecticut because a large contingent of traders wanted to live in New York City and did not like the reverse commute. Both Gov. Dannel P. Malloy and Lofts stressed that the Stamford workforce could expand to significantly more than 2,000 workers as the economy recovers.
At the height of the last business cycle, UBS reported having more than 4,500 workers in Stamford and smaller wealth management offices in Fairfield County. Lofts said the company currently has 3,500 workers in the state, but declined to provide a specific figure for its primary Stamford office and trading floor. Pavia said he believed UBS has between 2,600 and 2,800 people in Stamford.
Lofts acknowledged that UBS had considered New York and New Jersey as a destination for workers currently in Stamford but would not say how many have moved to date. The question now becomes whether any New York companies might consider one of Connecticut”™s best addresses in Stamford as a relocation site.
If UBS were to abandon a large block of space, its landlords would be competing both with the former General Reinsurance Corp. headquarters on East Main Street, which totals more than 500,000 square feet of available space, as well as with Building & Land Technology”™s Harbor Point development. To date, BLT has landed McKinsey & Co. and Louis Dreyfus Highbridge Energy as tenants; commercial brokerage company Cushman & Wakefield said last month it was seeing significant interest in the Gen Re offices at 695 East Main St., but as of late August had yet to announce any leases.
The Tresser Boulevard and 400 Atlantic buildings offer closer proximity to Stamford”™s train station, making them perhaps a better locale for companies considering a move from New York City to Connecticut that want to minimize disruptions for any employees on a reverse commute.
Malloy to date has gotten Cigna Corp., ESPN and TicketNetwork to sign up for his “First Five” program offering expanded and expedited incentives for companies adding at least 200 jobs in Connecticut. None of the three deals involves a lock-stock-and-barrel relocation here, although Cigna designated Bloomfield as its new headquarters facility, previously in Philadelphia.
