Jones Lang LaSalle


MERRILL MULLS ITS OPTIONS
By LOIS WEISS

May 10, 2006 -- FINANCIAL services giant Merrill Lynch has just begun working out its future headquarters scenario that could include construction of a new downtown skyscraper - perhaps even as part of the World Trade Center redevelopment.

Now located in well over 2 million square feet between World Financial Centers Two and Four, the firm wants to have all its bricks in a row by the time its triple net leases end in 2013.

Merrill occupies all 1.8 million feet of the 34-story 4 WFC and a portion of the 44-story 2.5 million foot 2 WFC while subleasing the rest to firms that include Nomura and Mass Mutual.
"It is exploring all its options," stressed one real estate executive on condition of anonymity.
"It wants to make a decision by the end of the year."

Those options include leasing or constructing its own tower, remaining in place and retrofitting, or moving to Midtown, a boro, Jersey or Westchester. Whew.

One intriguing scenario could have Merrill take over one of the new ground zero hi-rises and have it tweaked to their liking with the latest high-tech trading floors and gadgets.

Attention city and state: a hand is obviously being extended here for retention benefits.

We hear the real estate giant Trammell Crow has been hired to explore the "build," "no build" option while the similarly savvy Jones Lang LaSalle is concentrating on the renew and retrofit vs. rent elsewhere scenarios. The various firms all declined comment.

"The most important thing is that they remain a Lower Manhattan tenant," said Alliance for Lower Manhattan President Eric Deutsch. "They are an important anchor tenant and it is crucial for everything going on to keep them downtown."