While the decision appears to be due to cost-cutting measures inthe company, State Street spokesperson Alyson Riley, insists thedecision is only indirectly related to the recent economicdownturn's impact on the company. "We don't have the need for thespace at this point," Riley tells GlobeSt.com. "The decisionreflects a change in our staffing needs right now. We have a slowerpace of hiring due to the economy." Riley emphasizes that thedecision does not mean there will be layoffs.

Riley points out that the company leased the 235,000 sf of spacein a tight real estate market because it was available--a practiceshe says is commonly done at State Street. She notes that earningsfor the company were up 13% this past quarter but recently David A.Spina, State Street's CEO, reportedly warned both employees andinvestors that the company faces some serious expense cutting.

Riley declined to disclose the company's lease rate at thebuilding but unconfirmed estimates put the figure at about $30 persf. State Street is using Spaulding & Slye Colliers as itsbroker and they are marketing the space for $32 per sf.

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