dead stock broker

NYSE chair: Downtown a dead deal - New York Stock Exchange will build trading venue outside New York City - Brief Article - Statistical Data Included

The New York Stock Exchange will not build itself a new home Downtown. Last week, NYSE chairman Dick Grasso announced that the NYSE will instead build another trading venue outside the area. Plans to build a new HQ downtown have been on hold since Sept. 11. Prior to the terrorist attacks, the notion of a new 600,000-SF trading floor housed within a 900-foot tower did not sound too grandiose. The office tower was to be built directly across the street from the NYSE's Broad Street location.

The NYSE is reportedly looking for a secondary site in Westchester County or one of the city's five boroughs.

New York City has paid $3 million a month to reserve several empty buildings on the site. An added $6 million has been spent by the city to relocate tenants from an apartment building here.

"It's consistent with what businesses are doing now. Few of them are putting all of their eggs in one basket, so to speak," says real estate consultant Peter Pattison.

He predicts that the NYSE will establish their alternate venue somewhere like White Plains or even Stamford. Stamford, says Pattison, already hosts many major corporations--and both cities are close to/far enough from New York City.

It's too early to gauge where the NYSE will decide to go, but a few issues will factor into their thinking. One, the need to be on a separate power grid from New York City. And secondly--perhaps as important--is the transportation issue.

"They'll definitely be looking for a building with more than one fiber optic provider. The key words for this facility will be redundancy and reliability," said Kim Mowers, a senior vice president at Grubb & Ellis.

Mowers sees the 1-287 corridor as a convenient location. In White Plains, he identified a few buildings that might work for the NYSE's secondary venue.

"One North Broadway, 333 Westchester Ave. and 44 Hamilton St. are some contenders. And the old Texaco headquarters in Harrison is also a possibility," he said.

The former oil company's HQ is supposed to house Morgan Stanley, though the bank has not committed to the space yet.

Stamford is also a strong possibility, said Mowers, as it is right now building a back-up generator.

One downtown broker is concerned that lower Manhattan might lose its claim to being the financial district.

"I find this news very disturbing. The New York Stock Exchange is one of downtown's cornerstones," said Peter Sabesan, principal of the Hunter Organization.

"I also worry about the number of jobs that they plan to take up there," he said.

Bruce Mosler, president of US operations at Cushman & Wakefield, felt that the Bloomberg administration could have done more to convince the NYSE to keep its operation in New York City. Mosler is a member of-the professional services advisory council that frequently consults with the Lower Manhattan Development Corporation.

"It would obviously be better for the city if the NYSE kept a downtown commitment. Yet there is a rational element to what they are doing," said Mosler.

Asked if he sees the job issue as problematic, he agreed with broker Sabesan.

"We do need these jobs downtown. We need the growth here," he said.

COPYRIGHT 2002 Hagedorn Publication
COPYRIGHT 2002 Gale Group