What could happen to HSBC Tower?

BUFFALO, N.Y. (WIVB) - The HSBC logo reigns atop downtown Buffalo's tallest building. The building's future has been clouded with uncertainty for some time. What lies ahead?

HSBC officials are signaling a shift in their business model from retail banking to the commercial sector. But it is what they are not saying that is hanging like an ominous cloud over Buffalo. What happens to the thousands of jobs in western New York's tallest office building and the HSBC Atrium on Washington Street?

Tony Ogorek of Ogorek Wealth Management said, "Buffalo got caught up in the crosswinds, I guess, between the global financial crisis and the fact that this bank has to look out for its shareholders. It's not hitting its targets; it's got to modify its banking plan. And we're getting the short end of the stick on that."

It seems certain that HSBC will downsize its presence in Buffalo in some form. And pulling out of the tower at the foot of Main Street would leave a massive void in western New York's prime office market.

Common Council President David Franczyk said, "It's a ripple effect because you have this big tower here that would lose a lot of tenants in there. There's going to be no new buildings if that happens. And the whole dynamic of downtown economically and a viable place to do business is crippled very badly."

Shifting its retail presence from upstate New York to another part of the world, such as Asia for instance, would make sense, says UB professor Cristian Tiu. Asia is a huge growth market. Upstate New York is not. And it would be a return to HSBC's roots. HSBC is the acronym for Hong Kong Shanghai Banking Company.

Prof. Tiu said, "I think you should basically go to the markets where people are more affluent and want to spend more money at the current time."

But Ogorek believes cutbacks in HSBC's western New York presence could be partially offset by other banks filling the void.