Thread regarding IBM layoffs

IBM spinoff Kyndryl takes space at One Vanderbilt for global headquarters

Kyndryl, a company that will be created following the separation of IBM’s Managed Infrastructure
Services business, has inked a nine-year lease for 22,500 square feet at the new Midtown East
skyscraper. The firm will take part of the 15th floor.

So appears Kyndryl is targeted for nine year lifespan before they have it ready for sale.

https://www.bizjournals.com/newyork/news/2021/05/14/ibm-spinoff-kyndryl-one-vanderbilt-lease.html

A planned IBM spinoff has picked One Vanderbilt as its future global headquarters location.

Kyndryl, a company that will be created following the separation of IBM’s Managed Infrastructure Services business, has inked a nine-year lease for 22,500 square feet at the new Midtown East skyscraper. The firm will take part of the 15th floor.

The new deal brings One Vanderbilt up to 81% leased, keeping it on target to reach 90% leased by the end of this year, according to owner SL Green Realty Corp.

The 1.7 million-square-foot office skyscraper next to Grand Central Terminal opened in September.

The spinoff of Kyndryl is expected to take place by the end of this year. Kyndryl designs, runs and manages technology infrastructure for major businesses and organizations around the world.

Kyndryl executives chose New York City for their HQ because of the city's energy.

"At Kyndryl, we help our customers advance the vital systems that power human progress, and we chose a global headquarters in New York City because it exemplifies the vitality and energy of our new company," said Kyndryl CEO Martin Schroeter in a statement. "Our headquarters building reflects best-in-class sustainability practices and we are excited to be part of the revitalization of Midtown Manhattan."

IBM (NYSE: IBM) itself has deep roots in New York. The company was founded in the state. It's headquartered north of the city in Armonk, and has a major presence in New York City.

Steven Durels, executive vice president and director of leasing and real property at SL Green, said Kyndryl will join the building's roster of tenants that have picked the property for its design, its healthy work environment post-pandemic, its amenities and its convenience for commuters.

Patrick Murphy, Winston Schromm and Will Yeatman of Cushman & Wakefield (NYSE: CWK) represented Kyndryl in the lease deal. Robert Alexander, Ryan Alexander, Alex D’Amario and Emily Jones of CBRE (NYSE: CBRE) represented SL Green.

Kyndryl's lease is the fourth announced by SL Green at the skyscraper this month. Investment adviser MSD Partners; Mamoura Holdings (US) LLC, a firm wholly owned by Mubadala Investment Co.; and specialty finance company Nearwater Management LLC all recently grabbed blocks of space there.

Next week, on May 19, chef Daniel Boulud’s new restaurant, Le Pavillon, is scheduled to open at the building, occupying 11,000 square feet on the second floor, facing Grand Central with views of the Chrysler Building.

Then later in the year, the building's observation deck, called Summit One Vanderbilt, is expected to open Oct. 21.

SL Green (NYSE: SLG) is one of Manhattan's largest office landlords. It's a real estate investment trust with interests in 84 buildings totaling 37.8 million square feet, including 28.3 million square feet of Manhattan buildings.

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Post ID: @OP+1aSKWqYe

9 replies (most recent on top)

"They should have set their HQ in Alabama or Arkansas…"

Nobody wants to live there... this is the HQ... the high salaried folks, LOL!

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Post ID: @5xbu+1aSKWqYe

They should have set their HQ in Alabama or Arkansas… that way they would have had a leg up on their expenses…

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Post ID: @5znp+1aSKWqYe

Bear in mind they'll also need space here to manufactre the Kyndryll chocolate surprises.

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Post ID: @1epg+1aSKWqYe

When you calculate 185 square feet per person in this Office, this results in around 125 persons. General rule of thumb ist between 125 and 225 square feet per employee.

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Post ID: @1zfv+1aSKWqYe

Good move. NYC will get better once diblazio is out

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Post ID: @1arb+1aSKWqYe

Another stupid decision by stupid IBM executives!!! When will they ever learn before it is toooooo late!!!

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Post ID: @clp+1aSKWqYe

This is some of the most expensive real estate in the world. The company barely exists and their execs have already made their first colossally stupid decision.

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Post ID: @pkw+1aSKWqYe
  1. 5K sq ft office presence isn’t that big for a 19 billion dollar company.
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Post ID: @tov+1aSKWqYe

One can only speculate, if a similar, but much less extensive deal could be had somewhere else. Neither IBM nor Kyndryl has little money to waste on such extravagances.

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Post ID: @ipc+1aSKWqYe

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