Morgan Stanley heads to new Water Street offices

In a demonstration of confidence in the revitalization of Lower Manhattan's financial sector, Morgan Stanley, one of the world's leading financial services companies, will move 2,300 employees to offices at One New York Plaza later this year, the governor and mayor announced Thursday, June 2. 

In a move that represents the biggest relocation of employees downtown to date, the investment bank signed long-term leases for about 648,000 square feet of office space in the 50-story tower located at 1 Water Street. Morgan Stanley will receive an $11 million grant from the Job Creation and Retention Program (JCRP) to move 2,300 jobs downtown, adding to the 400 employees it already has in an office building on Wall Street.

Over the next three years, the firm plans to expand its downtown workforce even further, creating 600 more jobs, which will qualify it for an additional $5 million in grant money. The company will also be eligible for energy discounts through Con Edison's Business Incentive Rate program.

Pataki called the move another boost to downtown's revitalization

New York City's largest employers, Morgan Stanley's commitment to downtown is yet another boost to the revitalization of Lower Manhattan," said Gov. George Pataki at the press conference, which was held in the lobby of One New York Plaza.

As part of this transaction, Morgan Stanley has committed to keep its New York workforce -- more than 9,700 employees -- at locations throughout the city. The bank's core operations will remain in midtown, with its human resources, legal, and corporate service departments, among others, scheduled to occupy the new downtown space.

In choosing downtown offices, Morgan Stanley joins other financial firms -- including American Express, Merrill Lynch, and Goldman Sachs -- as well as major companies in a variety of other industries that have similarly remained in or relocated to Lower Manhattan since 9/11. The Health Insurance Plan of Greater New York (HIP) recently opened new corporate headquarters at 55 Water Street; Media Planning Group, a strategic communications company, signed a lease at 195 Broadway; and law firm Cadwalader, Wickersham & Taft moved into the World Financial Center last year.

Bloomberg praised the financial services firm's decision

"While we have been successful in diversifying Lower Manhattan's economy by attracting companies from multiple industries, we should never forget that Lower Manhattan is and always will be the financial center of the world," said Mayor Michael Bloomberg, praising the financial services firm's decision.

Morgan Stanley was one of the largest tenants at the World Trade Center, with approximately 3,700 employees at Number Two and Number Five World Trade Center in its individual investor and asset management groups. The firm lost nine of its employees on 9/11.

"The development of our One New York Plaza location reflects our continued commitment to New York City and to the downtown area," said Philip Purcell, Morgan Stanley chairman and CEO.

Since September 11, 2001, the NYC Economic Development Corporation (EDC) and the Empire State Development Corporation (ESDC) have jointly approved more than $290 million in JCRP grants to 76 companies to support Lower Manhattan's recovery. The program, which is federally funded, has helped retain and create more than 83,000 jobs in New York City. Of this total, 67,400 jobs have been retained and 6,800 jobs will be created in Lower Manhattan, with an additional 9,000 jobs retained in other parts of the city. 

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