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Media Giant Eyes Headquarters Move From Columbus Circle to Hudson Yards.



NY REAL ESTATE COMMERCIALMay 8, 2013, 9:17 p.m. ET.
By LAURA KUSISTO and ELIOT BROWN

Time Warner Inc. TWX -0.63% is leaning toward moving its roughly 1 million-square-foot headquarters to a fledgling office district on Manhattan's far West Side, according to a person briefed on the company's plans.

Time Warner intends to make a decision in June, the person familiar with the matter said.

The move to the Hudson Yards area by a major media company now located in a prestigious office tower near Central Park would boost the city's drive to transform an area now marked by rail yards and warehouses into a modern district of office and residential towers.

Time Warner executives previously have said the move would help it consolidate employees from 15 buildings. It would also give the company the chance to freshen its image as a cutting-edge media and entertainment company that can compete for young employees with hip tech and media start-ups.



Coach Inc. COH +0.79%helped spur the Hudson Yards' redevelopment in late 2011 by agreeing to take 600,000 square feet at a Related Cos. tower at 10th Avenue and West 30th Street. But that move was more modest than that contemplated by Time Warner, because Coach's headquarters were just a couple of blocks away.

"The next tenant is an important moment for the district because it starts to build real momentum with tenants from other parts of the city. Coach was already there. We also need tenants to have this willingness to relocate and spend money to move," said Derek Trulson, a broker at Jones Lang LaSalle, JLL -0.68%who represents Extell Development Co. in leasing its site in the area.

Time Warner could choose one or multiple West Side locations, likely from sites owned by Extell, Brookfield Office Properties, BPO.T -0.10%Joseph Moinian and Related Cos.

The company has toured these sites looking for about 1.3 million square feet, and company leaders and consultants have had multiple meetings with developers and brokers, according to people familiar with the matter. These people said the company had signaled it was narrowing the search to the West Side.

Time Warner is also leaning toward selling its 1.1 million-square-foot Columbus Circle headquarters—which is expected to fetch more than $1 billion, according to a person familiar with the matter. It expected to have a buyer by the end of May, the person said...

Time Warner has been a candidate for moving west since it met more than two years ago with Related executives about their Hudson Yards development....

Time Warner has 6,500 full-time employees and occupies 4 million square feet in the New York area. It moved to Columbus Circle a decade ago—when that area had a more dated atmosphere—and anchored the development of the two-pronged tower overlooking Central Park. It also leases space for HBO at 1100 Sixth Ave. and 1271 Sixth Ave. for Time Inc.

Time Warner would move most of the divisions in its Columbus Circle site to Hudson Yards, including executive offices and potentially CNN, according to people familiar with the matter. It would also move HBO....

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