JPMorgan Chase (JPM) will build a new global headquarters building in New York City, creating 8,000 construction-related jobs.
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The project will consolidate employees working in a variety of locations into a Midtown Manhattan office tower certified for energy and environmental design.
The new 2.5-million-square-foot headquarters will replace the old one at 270 Park Ave. The new building will house about 15,000 employees, replacing the current one designed in the late 1950s for about 3,500 employees.
JPMorgan Chase is the first company to develop a major project under New York City’s midtown east rezoning plan, passed in 2017.
Under the rezoning, JPMorgan Chase will purchase development rights from landmarks in the surrounding district to allow for a larger building. The seller of the air rights is required to pay the city a minimum contribution of $61.49 per square foot, which will provide funding for neighborhood improvements including shared streets, pedestrian plazas and thoroughfare upgrades.
According to The New York Times, the new tower will be up to 500 feet higher than the current 52-story headquarters.
Construction is expected to begin in 2019, pending required approvals. It should take about five years to complete, and during construction most employees currently located at 270 Park Avenue will be relocated nearby.
JPMorgan Chase doesn’t expect the project to have a material impact on its financial results.