HSBC is said to be leaning heavily towards vacating its signature tower when its lease expires in 2013.  But it might not be moving far.  Bank insiders say the bank's number one option is to build new space behind its Atrium building on lower Washington Street, but nothing has been finalized.  The bank-owned parking lot stretches along Perry Street nearly to Michigan Avenue. 

Sources also say the bank would take additional office space planned for the Webster Block.  ECHDC officials say that details on a project for that long-vacant site could be announced in 30 to 45 days.  A hotel is likely to be part of the Webster Block mix.  HSBC is said to be talking with The Buffalo News about building a shared parking ramp along Scott Street. 

Bank employees occupy 2/3 of the 38-story building straddling Main Street, or 650,000 sq.ft.  HSBC has said it is looking at all of its options while also negotiating with current landlord Seneca One Realty LLC on a lease renewal.  Seneca One has also offered to build a tower addition on the plaza to keep the bank at the site.

There are plusses and plenty of minuses if the bank decides to relocate.  A bank move would bring 3,000 employees to the Cobblestone District and provide a built-in customer base for Canal Side restaurant and shops.  If the bank builds on the Atrium site, it would occupy what many believe is an ideal site for a new, and  larger convention center.  Flooding the market with 650,000 sq.ft. of available space would be a significant blow to developers and landlords where, in a good year, downtown absorbs 150,000 sq.ft. of office space.