Oppenheimer & Co. Secures 220,000 Square Feet at 32 Old Slip in FiDi
Investment bank Oppenheimer & Co. has signed a 220,000-square-foot lease at RXR’s 32 Old Slip in Lower Manhattan. As Bisnow reports, the firm will occupy six floors in the 36-story skyscraper, relocating its headquarters from 85 Broad Street. The move, scheduled for early 2028, includes a significant joint renovation investment and state-backed capital support.
)
Context from Industry Pulse
Lower Manhattan’s office market is currently navigating a period of stabilization following a post-pandemic slump that saw vacancy rates climb to 26.7 percent in some areas. While Midtown has traditionally captured the bulk of recent leasing momentum, the Financial District is witnessing a selective revival among tenants seeking modernized space. The 220,000-square-foot lease at 32 Old Slip highlights a trend where large occupiers are trading larger footprints for more efficient, high-tech environments. This activity is supported by rising asking rents and a significant volume of deals south of Canal Street, even as the district competes against the higher-tier Class-A stock available in rival Manhattan submarkets.
"This move is an investment in our culture, bringing our teams together on six floors with modern technology and a dedicated space to welcome clients."
The new agreement involves a consolidation of space for the financial firm, which currently occupies 270,000 square feet at its nearby location. According to reporting from Bisnow, the relocation to 32 Old Slip will keep over 1,000 jobs within the Financial District. To facilitate the transition and modern fit-out, the landlord and tenant are collectively investing approximately 66 million dollars into the premises. This interior transformation will be managed by architecture firm Gensler to create a technology-focused environment for staff and clients.
Empire State Development is supporting the retention of these jobs through a 3.2 million dollar capital grant. This public-private collaboration underscores efforts to stabilize the commercial office sector in Lower Manhattan, which has faced significant headwinds since the pandemic. Bisnow notes that the western portion of the Financial District recently struggled with vacancy rates reaching nearly 27 percent, as tenants often favored newer or updated stock in Midtown and Midtown South.
Transaction logistics involved several major brokerage teams. Representatives from JLL managed negotiations for the investment bank, while RXR utilized an in-house team to handle the landlord’s side of the lease. The 1.1 million-square-foot tower at 32 Old Slip was originally acquired by RXR in 2015 for 675 million dollars, and this latest deal represents a significant long-term commitment to the property’s future occupancy.
Recent data suggests a potential turning point for the submarket south of Canal Street. While the area has high concentrations of older building classes, leasing activity reached 4 million square feet in the first half of the year. Bisnow indicates that asking rents in the region saw an 8 percent increase this past July compared to the previous year, suggesting that high-quality assets in the Financial District are successfully competing for major corporate occupiers.
The Industry Pulse Bottom Line
Oppenheimer’s relocation demonstrates that despite high vacancy rates, Lower Manhattan remains a viable hub for financial services when landlords and state agencies provide sufficient capital incentives for modern renovations.