HSBC Plans to Move out of the Tower

December 5, 2012 Updated Dec 5, 2012 at 2:16 PM EDT

By WKBW News

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HSBC Plans to Move out of the Tower

December 5, 2012 Updated Dec 5, 2012 at 2:16 PM EDT

Buffalo, NY (WKBW) HSBC confirms it will fully vacate One HSBC Tower when the lease expires in October of 2013.

At 38 stories, HSBC tower is the tallest building in Buffalo. HSBC leases 22 floors at the site. Business First says this move means that the building will be virtually empty next year, since the Canadian Consulate already moved out and law firm Phillips Lytle is slated to move next year.

A recent report by Pyramid Brokerage shows that this will put another 740,000 square feet of office space on the market in Buffalo. It could impact lease rates and property values. Right now, Buffalo has about a 13% vacancy rate, that's up from 11% last year.

HSBC tells Business First no jobs will be lost. HSBC employs 3,000 people in WNY. They were given the news this morning. HSBC says employees from the tower will shift to two locations: the HSBC Atrium on Washington Street and a facility in Depew, which is leased. Both of those sites will be renovated to handle more workers.

400 workers from a mortgage operation in Depew will be transferred to new jersey.