European Bank Adds Suburban Philadelphia Hub To Its Office-As-Destination Strategy

French banking giant BNP Paribas took the small-town route in the United States, opening a new hub about 100 miles outside New York in Chesterbrook, Pennsylvania.

The commuter campus does not signal plans for the Parisian BNP BNP,
ditch New York or other global shopping malls in response to the pandemic, and instead build a network of campuses, including outside urban enclaves, as part of its office-as-destination concept.

Many of the world’s largest financial institutions and global companies have been forced to rethink the future of the office in response to the pandemic – sometimes multiple times – including as the delta variant of the coronavirus thwarted attempts by some banks to recall more employees to the office. for Labor Day.

Read: Flexibility, plants, and a good mood are all part of the strategy for returning to the Salesforce office.

Deutsche Bank America CEO Christian Riley told Bloomberg this week that she plans to return about 5,000 employees to the German bank’s new headquarters in New York’s Columbus Circle within about the next six months.

This plan, however, will also allow some DB Deutsche Bank to
The staff must work 60% per week remotely, a person with direct knowledge of the matter told MarketWatch.

The proliferation of flexible working hours in America has raised fears that cities may find themselves burdened with empty office buildings in need of a different purpose.

See: Can Empty Offices Become Affordable Housing? New legislation aims to try

Sales of trophy office buildings over the past 18 months have been sparse and sparse, leading to persistent questions about which properties might be sold when construction transactions are resumed.

However, several key office REITs have outperformed major US stocks this year. Vornado Realty Trust VNO, St.
+ 3.52%
shares were up 16.5% in the year to Friday, while Boston Properties, Inc. BXP,
+ 3.20%
grew by 18.3%. This compares to the DJIA Dow Jones Industrial Average.
+ 1.43%
Growth of 12.2% and SPX of the S&P 500 index,
+ 1.15%
an increase of 16% for the same plot.

Credit ratings agency S&P Global warned this week that recovery in the office sector “may lag, given the impact of teleworking,” but that the dim outlook could also lead to lower property cash flows, lower ratings and losses for debt holders such as Banks. insurers and US REITs.

According to Real Capital Analytics’ latest commercial property price indices, demand for office space in the suburbs remained strong during the pandemic, resulting in prices rising 14.8% in August from a year earlier.

But office prices in central business districts have plummeted over an extended period of work from home, accounting for a 3.7% annual decline in August.

BNP’s suburban office in Philadelphia will serve as “a model for our future workplace, with a focus on employee well-being and experience,” said Jose Placido, CEO of CIB Americas at BNP Paribas, in a statement announcing the opening of the new campus.

BNP expects approximately 400 employees will eventually occupy nearly 60,000 square feet of the 3-story building at 735 Chesterbrook Boulevard, including about 300 new employees over the next three years. This hotel was built in the 1990s in a city of approximately 4,800 that was recently voted one of the best places to live in America for its public school, housing, work and more.

The French bank operates in 68 countries and has been in the United States since the late 1800s.

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