Goldman Sachs Agrees on Lease for Frankfurt Office Tower SpaceBy , , and
Deal is said to be for enough space for about 1,000 workers
Bank has previously said that it could quadruple staff in city
Goldman Sachs Group Inc. agreed to lease offices at a new building in Frankfurt as it seeks additional space ahead of the U.K.’s departure from the European Union.
The bank agreed to lease space on the upper floors of the Marienturm tower that is being built in the city’s financial district, the firm said in an emailed statement. The bank is renting about 10,000 square meters (108,000 square feet) of offices, enough for about 1,000 workers, according to two people with knowledge of the matter, who asked not to be identified as the matter is private.
“This expanded office space will allow us to grow our operations in Germany to serve our clients, as well as provide us with the space to execute on our Brexit contingency plan as needed,” Goldman Sachs spokesman Sebastian Howell said in the email. He did not comment on the size of the space leased.
A spokeswoman for the tower project’s developer Pecan Development declined to comment.
Goldman Sachs is considering post-Brexit scenarios that would see the staffing level in Frankfurt rise as much as fourfold from the current level of about 200, Wolfgang Fink, the co-chief executive officer for Germany, said last month. The final increase will depend on the outcome of the negotiations between the U.K. and the EU, a spokeswoman for the New York-based bank said at the time.
Lobby group Frankfurt Main Finance estimates that as many as 10,000 finance jobs could relocate from the U.K. capital to Frankfurt because of Brexit. Other U.S. investment banks such as Citigroup and Morgan Stanley will also move jobs to the German financial capital. Sumitomo Mitsui Financial Group Inc. has already signed a lease for space in the city, according to people familiar with the decision, making it one of the first foreign banks to commit to new office space there.
The Marienturm development is slated for completion in early 2019, according to the building’s website. It will be 155 meters high and have 38 floors.
Goldman Sachs’ Frankfurt office is currently a high-rise building outside the financial district. It was completed in 1991. The bank was previously also considering the option to remain in its current location, people familiar with the matter have said.