Rather than squeeze into tighter quarters after a recent acquisition, Instinet decided to loosen its belt a few notches and signed a 10-year lease for roomier office space in the Big Apple.
The agency broker will leave its Times Square location starting next spring and move a block, or so, west to 1095 Avenue of the Americas–facing Bryant Park. Instinet will occupy roughly 100,000 square feet.
That’s a big step up from its current office that occupies 65,000 square feet. Jonathan Kellner, president of North America, estimates that even right now its staff requires about 75,000 square feet of office space.
With its current lease expiring, Instinet began looking for new office space. The purchase last month of TORC Financial, a derivatives trading technology vendor, made the decision an easy one, as the added employees left Instinet bursting at the seams in Times Square.
"We’ve come to the point where we’ve grown out of this space," Kellner said. "We needed more room, especially with the TORC acquisition; we’re adding 30 people right away."
Instinet found itself a sweet deal due to the down market in commercial real estate. The firm declined to give specific figures. But Crain’s New York Business reported that Instinet signed its 10-year lease at a monthly rate that is 36 percent cheaper than the one the previous tenant secured two years ago–at the height of the real estate market.
Currently, Instinet employs 310 people at its 3 Times Square location. About 90 of those are front office–consisting of traders, sales traders and salespeople. Most of the rest work in technology and corporate, including finance and human resources professionals, Kellner said.
The firm has no immediate plans to expand head count beyond adding TORC staff in the short term, Kellner said. Still, Instinet is considering its next step for growth.
"As much visibility as we have into the future, plans are to grow, somewhat," Kellner said. "I don’t think we’re looking to double. You’re looking at 25 percent growth over a period of time. But it’s a 10-year lease."
