S
tate Street Corporation is set to vacate its 500,000-square-foot office space in Boston's Fort Point neighborhood. The financial services company will leave One Channel Center later this year, with approximately 1,500 employees relocating to other offices, including the company's headquarters tower at One Congress St and locations in North Quincy and Burlington.

    The move comes about four years before the end of State Street's lease, which expires in 2029. According to Dustin Sarnoski, head of global realty at the company, the decision is driven by a desire to consolidate employees into a more centralized location, reducing costs and increasing productivity. The company has seen the value of in-person work since implementing a return-to-office mandate in 2023.

    The departure won't negatively impact the Fort Point neighborhood, according to Tom Ready, board member of the Fort Point Neighborhood Association. Employees tend to eat at the corporate cafeteria rather than patronizing local restaurants, and the company's workforce has been declining in the area over time. While State Street's move is unexpected, it's not surprising given their consolidation efforts.