HSBC will be vacating its signature tower when its lease expires in October 2013. Bank employees currently occupy 2/3 of the 38-story building straddling Main Street, or 650,000 sq.ft. The move will leave the tower nearly 90 percent vacant. Law firm Phillips Lytle will be moving to One Canalside next year and the tower recently lost tenants Capital One Financial and the Canadian Consulate.
Buffalo Business First has the scoop:
The longtime anchor tenant of the tallest building in Buffalo plans to shift employees to two locations: the HSBC Atrium on Washington Street and its facility in Depew, spokesperson Neil Brazil said. Renovations at both sites will take place to accommodate the additional workers.
Employees were notified of the changes Wednesday morning, Brazil said. No job losses are planned as a result of the shift, he said.
“We think this is a good piece of news for Buffalo,” Brazil said. “Nobody is going to lose their job as a result of this announcement.”
Flooding the market with over 700,000 sq.ft. of available space is a significant blow to developers and landlords where, in a good year, downtown absorbs 200,000 sq.ft. of office space.
Tower owner Seneca One Realty LLC has begun exploring options including adding residential and/or hotel space to the building. The owner is planning to bring in a panel of Urban Land Institute professionals to study possible new uses and a redevelopment strategy for the building.