SOMERS, NY—GlobeSt.com exclusively has confirmed that IBM is planning to relocate its workforce at its complex here to its North Castle headquarters by the spring of 2017 and put the multi-building 1.2-million-square-foot complex up for sale.

The company also plans to undertake capital improvements to modernize its original corporate headquarters building—known as IBM North Castle—of approximately 420,000 square feet in connection with the space consolidation program. The North Castle headquarter office is adjacent to the technology company's existing headquarters building in Armonk, which is less than 300,000 square feet in size.

“IBM is transforming the company to meet the needs of a changing world and the emerging needs of our clients. As a result, IBM is transforming the way our teams work as we become a cognitive solutions and cloud platform company,” says IBM Doug Shelton. “That's why we will be moving all our employees in Somers, many of whom work in solitary offices, to modern, open work spaces at our facility in North Castle by March 2017.”

He continues, “IBMers want to work in agile, collaborative work environments—like the original development team for our Watson system, which worked in an open setting at our Yorktown Research headquarters. IBM Somers real estate holdings will be sold to an outside developer.”

The 1.2 million-square-foot I.M. Pei-designed complex on more than 700 acres was built in the mid 1980s. Shelton says the company has not identified any outside developer/buyer for the Somers property at this time.

IBM will make what he terms “a significant investment” in its North Castle facility to create a collaborative workspace environment. Those improvements “will provide the tools, technology and amenities to support this new way of working. This will enable faster innovation, a contemporary work environment, and meaningful results for IBM and our clients,” Shelton says.

IBM's employee headcount in Westchester “will remain about the same at the end of the year, as it is now,” Shelton reveals.

The news is another blow for the Town of Somers, which also saw PepsiCo move out of its nearly 550,000-square-foot complex recently in a consolidation to its headquarters in Purchase. Somers Town Supervisor Rick Morrissey tells Globest.com that the decision by IBM “did not come as a surprise to Somers, ”noting that IBM has requested tax reductions on the property in the past due to lower occupancy levels. The PepsiCo property has been sold to an entity called One P. Way, which is attempting to reposition the vacant property,” according to Supervisor Morrissey.

Somers is “transitioning” from what was until recently a suburban office location with two major Fortune 500 companies, he says. A host of residential development projects launched in Somers recently, including a rental apartment community being developed by AvalonBay Communities.

IBM's employee headcount in Westchester “will remain about the same at the end of the year, as it is now,” Shelton reveals.

Instant Insights /

IBM Plans to Vacate, Sell Westchester Campus

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