Time Warner to Launch Review of Manhattan Office Space
The evaluation, expected to be finished by the end of next year, could lead to a consolidation of buildings or a move of the conglomerate's headquarters or other offices to new locations.
NEW YORK - Time Warner is about to launch a broad-based evaluation of its various office real estate here, including its Manhattan headquarters, a source said in confirming a Tuesday report by the Wall Street Journal.
The evaluation of the entertainment conglomerate's 10 buildings throughout Manhattan is expected to be completed by the end of next year and comes ahead of the expiration of leases later this decade. However, options for the company's future real estate plans are numerous, and TW isn't expected to make any quick decisions or moves.
A TW spokesman declined comment.
Options for the TW headquarters alone range from staying in the Time Warner Center at Columbus Circle in midtown Manhattan, in which the company owns space, to moving to the new World Trade Center or moving into or building a new office tower on the West Side of Manhattan, the Journal said.
Renewing leases for its various office locations could be costly amid higher real estate prices, the Journal said. Consolidating TW's 6,000 employees in the Big Apple into one building or moving some units to less expensive neighborhoods, such as downtown or on the far West Side of Manhattan in the 30s, are under consideration. Such moves could save the company more than $100 million, the paper said.
"One of the key areas where we're working to improve the efficiency of our company is real estate," TW CEO Jeff Bewkes and CFO John Martin said in a memo to staff, according to the Journal. "We are about to undertake an evaluation of our office footprint in the New York metropolitan area and develop a long-range plan to meet our future needs."