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McKinsey to Open New Offices in Hedge Fund Town Near Greenwich

(Bloomberg) -- McKinsey & Co. is opening an office in Darien, becoming the latest company to converge on a wealthy Connecticut town that’s fast becoming a miniature version of nearby Greenwich.

The consulting firm joins financial companies in Darien such as Crestwood Advisors and Janney Montgomery Scott, which have taken space in a revitalized and expanding downtown that’s seeking to attract bankers who want to stop commuting into New York City.

The rise of little Darien, the richest town on Connecticut’s Gold Coast, has become symbolic of the increased demand for state-of-the-art work spaces that are far from urban cores and closer to where many employees live. While office values have tumbled nationwide since the pandemic, Darien’s office leasing surged 164% last year, according to real estate brokerage CBRE Group Inc.

“As our Connecticut-based colleagues and clients have been innovating their work arrangements, to be closer to both, we have made the decision to continue growing our team in Darien,” McKinsey said in an email. “We’re eager to further develop our presence in Connecticut.”

The firm has expanded in recent years in some of the areas that have benefited from rising business activity and population during and after the pandemic. In Miami, for example, McKinsey has grown to 400 employees from 100. 

In Darien, the new offices will serve 260 McKinsey employees who will be relocated from nearby Stamford. The Metro-North Railroad station in Darien is a short walk to downtown, while Stamford is lacking in new, upscale buildings within walking distance of the train. 

Darien’s growth has fueled comparisons to nearby Greenwich, a longtime favorite with powerful hedge funds but a town that’s perennially short on office space. It’s happening on a far smaller scale, however. Darien, with a population of just 22,000, has only about a fifth of Greenwich’s space. 

Closely held McKinsey, which said it generated a record $16 billion in revenue last year, has about 45,000 employees around the world and has advised everyone from the Pentagon to China’s Ping An Insurance (Group) Co. 

But consulting firms are facing industry headwinds, and last year McKinsey embarked on a plan to eliminate about 1,400 roles. More recently it warned about 3,000 consultants that their performance would need to improve. 

In addition to McKinsey, investment manager Balance Point Capital has also signed a lease with Baywater Properties, the developer of the remodeled downtown known as the Corbin District. 

Earlier this year, insurance giant Aon Plc also announced new space in Darien.

©2024 Bloomberg L.P.

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