Bank of America has signed a 20-year lease for the entire office portion of its namesake flagship tower in New York, underscoring the city’s role as a global financial capital.
The Charlotte, North Carolina-based banking giant agreed to a triple-net deal for 2.4 million square feet at the 51-story One Bryant Park in Manhattan, according to Bank of America and developer The Durst Organization, the joint owners of the property.
The triple-net structure between Bank of America and Durst is new, a company spokeswoman told CoStar News. It means Bank of America, as a tenant, assumes responsibility for operating expenses including taxes, insurance and maintenance. At the same time, the arrangement also gives Bank of America day-to-day operational control over items such as security.
The tower was completed in 2010 with Bank of America as the anchor tenant. It is owned by the financial giant and Durst in a joint venture with each having about a 50% stake, the spokeswoman said. Even though Bank of America has equity in the property, its operating business still pays rent to building manager Durst.
Since 2010, Bank of America has expanded its occupied footprint from 1.8 million square feet to 2.1 million at the building, the spokeswoman said. The roughly 300,000 square feet the bank added in its new deal will be subleased to office tenants already in place, she said.
The lease “reinforces Bank of America’s long‑term commitment to New York” and “cements its Bryant Park campus,” the bank said in a statement. The campus also includes Two Bryant Park and the Grace Building across the street.
Bloomberg earlier reported the deal.
Bank of America employs more than 10,000 people in the Bryant Park area alone, out of more than 12,000 citywide, the spokeswoman said. All eight of the bank’s lines of business operate in or around the Bryant Park campus. The firm has at least 10 other office locations across the city, including at 75 Rockefeller Plaza, according to CoStar data.
The expansion comes as the financial sector remains the key driver of New York’s office rebound from the pandemic, fueling a wave of top-dollar deals. It also highlights the city’s continued status as a money hub, even as banks and financial services firms expand operations in markets such as Miami and Dallas, industry professionals have said.
For instance, JPMorgan Chase last year opened its global headquarters at 270 Park Ave., and American Express recently unlocked the final stage of the World Trade Center redevelopment with its plan to relocate its global headquarters.
Bank of America recently connected a new 800‑seat underground conference center and cafe beneath the Grace Building with Two Bryant Park. Both of those properties are owned by Brookfield.
For the record
The Durst Organization was advised by Gary Rosenberg of Rosenberg & Estis and represented in house by Tom Bow, Rocco Romeo and Nora Caliban. Bank of America was represented by Robert Alexander, Ryan Alexander and Taylor Callaghan of CBRE.