Financial Company Relocating More Than 1,000 Including Executive Personnel in Cost-Cutting Move
Worldwide possession management company AllianceBernstein LP confirmed today that it will transfer its longtime Manhattan corporate headquarters to Nashville, deciding to pick the low-priced location over access to skill in one of the world’s largest monetary capitals.
The company stated it will move approximately 1,050 tasks currently based in the New York metro area to Tennessee’s capital start later this year. It anticipates the transition to take a number of years to complete. The firm uses almost 3,500 employees in 22 nations and has roughly $549 billion in properties under management.
The move to Nashville comes in the middle of a continuous cost-cutting initiative at the company – an effort where it is not alone amongst its financial services coworkers in New york city City.
AllianceBernstein’s brand-new Nashville head office will house its finance, IT, operations, legal, compliance, internal audit, human capital, and sales and marketing operations. It has not yet exposed the address of its new place.
The company said it will continue to maintain a New york city City location for its portfolio management, sell-side research study and trading, and New York-based private wealth management companies.
It prepares to spend more than $70 million to develop its corporate headquarters in Nashville, and expects to incur transitional expenses for the first couple of years prior to recognizing expense savings benefits.
“We see Nashville as a game-changer in terms of our ability to source, establish and keep talent, supply a high quality of life for our workers, improve our one-upmanship in an increasingly challenging market,” Seth P. Bernstein, president and CEO of AllianceBernstein, said in a prepared statement.
The business acknowledged the relocation carries substantial danger in terms of being able to draw in and maintain crucial workers beyond New York. But the company stated it wants to run that risk in exchange for the long-term costs savings, and believes it might have the ability to lure a lot of specialized, technical and investment workers by pitching quality of life and a more family-friendly market.
AllianceBernstein said it began exploring numerous U.S. cities for a second principal U.S. place in 2015. It had whittled the list down to 2 undisclosed locations. Now we understand one was Nashville, and the other most likely San Antonio, TX, where it already rents 92,067 square feet of office space.
“We believe a 2nd principal place will afford us the chance to supply an improved lifestyle option for our employees, allow us to draw in and recruit new skilled staff members to a highly preferable area while enhancing the long-lasting cost structure of the firm,” the firm disclosed in its 2017 annual report last month.
Relocation was not the only functional cost-cutting effort it started in 2015. It lowered its headcount in its finance and administrative services departments by about 3% and also began to sublease loads of unused office space.
AllianceBernstein currently leases about 992,000 square feet at its principal executive workplaces at 1345 Opportunity of the Americas under a lease expiring in 2024. It only occupies about 523,000 square feet of space and has sublet (or is looking for to sublet) the rest.
It likewise rents about 229,000 square feet of area at One North Lexington in White Plains, NY, under a lease ending in 2021. At this place, it presently inhabits about 69,000 square feet and has the rest up for sublease.
In San Antonio, it only occupies about 59,000 square feet of area and has sublet the remainder.
The relocation by the money-management giant to Nashville belongs to a more comprehensive cost-cutting effort throughout the industry that for years has been under pressure from emerging technology-based and other inexpensive investing choices.
Last summertime, Barclays Capital acquired The Crossings at Jefferson Park in Whippany, NJ. The park totals 525,000 square feet of Class An office space.
Barclays is moving 329 workers from its workplaces at 1301 Opportunity of the Americas where it rents about 295,000 square feet. Another 112 staff members will be moved from its main headquarters at 745 Seventh Ave., where it rents more than 1 million square feet.