The Seattle Times reported that Meta is reviewing “leases for Seattle-area office buildings.”
Facebook has confirmed plans to sublease its workplaces in downtown Seattle and within the Spring District in Bellevue.
Microsoft additionally confirmed that it will not renew its lease on the 26-story City Center Plaza in Bellevue when that lease ends in June 2024, the report talked about.
The ongoing work-from-home and layoffs have reduce into demand for workplace house in Seattle and different tech cities within the US.
In November, Meta introduced layoffs of 726 Seattle-area staff.
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A Meta spokesperson mentioned that given the financial local weather, it’s making an attempt to be financially prudent.”The Seattle office market is now struggling “the place whole workplace emptiness now stands at round 25 per cent,” according to a report by commercial real estate agency Colliers.
Even non-vacant offices are often half empty, owing to remote work.A
“Given the macroeconomic circumstances and the hybrid work development, we consider we’ll see an uptick in workplace emptiness over the subsequent couple of quarters,” Connor McClain, senior vice president and leasing expert at Colliers,” was quoted as saying within the report.
Twitter CEO Elon Musk mentioned final week that workplace leases in San Francisco will drop additional.
David Sacks, Co-founder and accomplice at Craft Ventures, tweeted that he obtained provided workplace house in San Francisco for a similar value as 2009.
Musk replied: “It will go lower”.
Twitter has additionally been sued for failing to pay $136,250 as hire for one in every of its workplace areas in San Francisco, and is vacating workplace areas in Singapore and India.
The firm’s headquarters are positioned at 1355 Market St, the place Twitter has additionally reportedly fallen behind on hire.
Amid international recession fears, San Francisco stands to lose probably the most as work-from-home within the final three years of the pandemic at tech firms and costly actual property has stalled the town’s development.