JPMorgan Chase has purchased a downtown office building located in Washington D.C. and this is expected to serve as the new regional headquarters. The financial institution which is based in New York bought the Bowen Building at a price of $140 million from JBG Smith. The 12-story building with a total space of 231,000 square feet is at the moment 86% leased. While JPMorgan will own as well as occupy the building property management services will continue to be offered by JBG Smith.
Renovation works are expected to begin next year and the financial institution will start occupancy in 2021. JPMorgan’s other offices in the region and this includes in Tysons Corner, Virginia. In the recent past JPMorgan has also opened another office located in Bethesda, Maryland and it is dedicated to serving both small as well as mid-sized businesses.
Investment for the long-term
“This new regional headquarters and branch expansion in Greater Washington will help us continue to invest here long term and play our part in continuing to grow the economy of this great region,” JPMorgan Chase Mid-Atlantic region chairman, Peter Scher, said.
The expansion of the financial institution in the Washington, D.C. region constitutes part of the plans the bank has with regards to expansion – in the coming half a decade JPMorgan Chase intends to expand to between 15 and 20 new markets. Though JPMorgan already has existing business banking relationships in the area, this is the financial institution’s first foray into the retail banking business of the Washington market.
Creation of jobs
Though branch locations haven’t been specified 70 new branches are expected to be opened with 700 employees being hired in the District as well as in Virginia, Maryland. About 20% of these employees will be picked from low-to-moderate-income communities and this will include Ward 7 and Ward 8 in D.C.
In the region JPMorgan has also committed approximately $4 billion in the course of five years for lending to small businesses as well as for homes. JPMorgan will also increase the amount it lends in the region for the construction and maintenance of affordable rental housing over a period of five years by close to 50% to reach a figure of $500 million. Additionally the financial institution will increase the amounts it gives to philanthropy in the region to $25 million from $10 million and this is with the intention of driving inclusive economic growth.