J.P. Morgan & Co. may lease space in a Manhattan office building being vacated by Chemical Banking Corp., New York City brokers said.

The move to the Park Avenue site would enable Morgan to consolidate its private banking and investment management operations, which are now housed in two buildings. The one location would charge less rent.

Chemical also could benefit. As reported, the owner of its old headquarters is insisting that Chemical pay to dismantle an atrium installed when the bank moved into the building.

The owner, Stanley Stahl, has been arguing that the leaky structure makes it hard to attract new tenants, who do not want to pay for its maintenance. Contracting sources said he is demanding $10 million to $20 million to dismantle and refront the building.

Some of his argument could collapse if it becomes known that he has nabbed a major tenant, the sources said.

A Morgan spokesman acknowledged that the bank is considering a move but declined to specify buildings. The banking company could renegotiate its current leases or move elsewhere, he noted.

Brokers said Morgan is also considering space in a Park Avenue building being sold by Olympia & York Developments Ltd. as well as the McGraw-Hill building on Avenue of the Americas.

Chemical has moved its headquarters across Park Avenue to a building owned by its merger partner, the former Manufacturers Hanover Corp.

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