Deloitte to City: Give Us Incentives to Grow Our HQ
Deloitte, the accounting giant that also happens to be one of the largest tenants looking for office space in the New York City marketplace, has asked the city for up to $21 million in tax credits, in exchange for keeping its headquarters in New York City and increasing its staff size.
The formal request, available here, asks the city for $10.65 million in tax exemptions — a number that could rise to $21 million — contingent on the accounting firm hiring up to 2,100 new employees, and keeping them, along with its existing 4,211 New York employees, in Lower Manhattan for the duration of the 17-year office consolidation project.
Right now, the firm is headquartered at 1633 Broadway, with additional offices at 25 Broadway and World Financial Center.
Should the incentives not come through, Deloitte has other expansion options: “In New Jersey, the Deloitte U.S. Firms have significant operations, including recently expanded, underutilized Class A office space. In Connecticut, the Deloitte U.S. Firms have in excess of 30,000 square feet of space which similarly is underutilized.”
The request also seems to indicate that, contrary to some published reports, the Deloitte lease with 4 World Financial Center landlord Brookfield Properties, while nearly complete, is not yet a done deal:
Deloitte is in the process of negotiating a lease for approximately 390,000 square feet at 4 World Financial Center (the “Initial Space”). Subject to execution of the lease and the availability of Agency assistance, this space will house Deloitte’s U. S. headquarters and the most of its New York City operations.
New York City’s Economic Development Corporation will hold a hearing on the request tomorrow at its 110 William Street offices. For more information, click here.