Goldman to Move Tokyo Base, Reaffirming Office Work

Goldman Sachs Group Inc. is preparing to move its Japan headquarters into a new tower being built in Tokyo as the Wall Street firm adapts to office life after the pandemic.

The U.S. investment bank plans to relocate from the landmark Roppongi Hills complex owned by Mori Building Co. into the developer’s tentatively named Toranomon Hills Station Tower sometime after its completion, people with knowledge of the matter said.

Construction work on the 49-story building is scheduled to finish in July 2023, according to Mori’s website. It’s part of the property giant’s four-tower Toranomon Hills Area project in a district just south of the Imperial Palace. A new subway station on the Hibiya line opened there last year.

Goldman to Move Tokyo Base, Reaffirming Office Work

The plans are in line with Goldman Sachs’s commitment to office life, a stance at odds with some of its rivals that are looking to pare space after the pandemic ushered in a wave of remote work. Chief Executive Officer David Solomon has been vocal in opposing work from home, calling it an “aberration.”

A Goldman Sachs spokesperson declined to comment. A spokeswoman for Mori Building said matters relating to tenants are confidential.

Goldman Sachs has a little more than 1,000 employees in Tokyo. It has been a key tenant of the Mori Tower in Roppongi Hills since the complex opened 18 years ago, even after reducing space as headcount fell. Toranomon Hills is about 3 kilometers (1.9 miles) away from Otemachi, the main financial district.

Goldman to Move Tokyo Base, Reaffirming Office Work

Tokyo office vacancies have soared during the pandemic, putting pressure on rents. Vacancies climbed to an almost seven-year high of 5.9% in May, according to real estate brokerage Miki Shoji Co.

Other U.S. banks including Morgan Stanley have taken a similar stance to Goldman on work from home, while European lenders including UBS Group AG are introducing hybrid models. HSBC Holdings Plc has committed to a 40% reduction in office space in the long term. Tokyo-based Nomura Holdings Inc. is also considering trimming space and has announced plans to make flexible work permanent.

©2021 Bloomberg L.P.

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