By ALLISSA KLINE
akline@bizjournals.com | 716-541-1612

HSBC Bank USA NA will continue to review its corporate real estate requirements in Buffalo now that it has received a 90-day extension to make a decision about one of its potential sites.

The bank last week requested a 60-day extension of its option on the Webster Block, a 1.9-acre surface parking lot across the street from HSBC Arena.

Buffalo Mayor Byron Brown asked the Common Council to extend the deadline to March 31. The council voted 8-0 in favor of the extension during a Dec. 29 meeting.

"This is going to give us the necessary time to continue to evaluate the process appropriately," said bank spokesperson Neil Brazil on Dec. 29. "We want to continue our review in an appropriate manner."

HSBC is considering its choices in anticipation of the fall 2013 expiration of its current lease at One HSBC Center. It could stay in the 38-story tower, where it leases more than 653,000 square feet on 22 floors, or it could build a new facility.

A brand-new site on the Webster Block or an expansion of its own HSBC Atrium on Washington Street are possibilities, as well.

The Buffalo Common Council in August approved a plan to offer the Webster Block to HSBC as a possible site for its regional headquarters.

The city of Buffalo would receive $3.32 million from Erie Canal Harbor Development Corp. for the sale of the parcel to the bank. ECHDC is overseeing development of the Canal Side project, which includes the Webster Block.

HSBC is one of two tower anchor tenants considering moving out of the building.

Law firm Phillips Lytle LLP, whose lease also expires in 2013, is delaying its decision until early 2011. Together, the two private-sector entities take up 87 percent of the space in the tower.

HSBC employs 2,200 people in downtown Buffalo. It has been in the same location since 1972.

It has been urged in recent weeks to remain in the tower by those who worry that an exit could severely damage the downtown market.

Buffalo Place Inc. sent a letter to a top HSBC official, urging the bank to stay put.

Mayor Brown, meanwhile, sent a letter to ECHDC chairman Jordan Levy expressing his wish that the bank remain where it is.