JPMorgan Chase is preparing to demolish its previous headquarters and build a new skyscraper in its place. While waiting for city approval on the expected 5-year construction plan, JPMorgan is planning to relocate current operations to nearby buildings in Manhattan. Details on costs aren’t being made public, but nearby buildings of similar scale top $3 billion.
The announcement marks the first significant construction process to begin after recent rezoning efforts meant to revitalize midtown Manhattan. The new zoning rules gives private builders the ability to purchase development rights from public property and so build ever taller buildings. All proceeds from said sales go toward transportation and infrastructure efforts.
Manhattan’s density of development makes air rights a tense challenge for developers. Past projects have spent hundreds of millions on securing air rights alone. JPMorgan’s new 70 story headquarters have yet to break ground, but the costs are already climbing.