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Photo credit: gigi_nyc / CC by 2.0
Spotify is considering subleasing five floors of its offices in Manhattan’s World Trade Center 4, which it plans to vacate by the end of the year.
Spotify plans to vacate and sublet five of its four offices in the World Trade Center by the end of the year. The streaming giant is one of the largest tenants in the building, with 564,000 square feet (14 floors) of offices.
The space the company intends to unload includes more than 85,666 square feet, which the company took over from the Port Authority of New York and New Jersey when Spotify expanded its footprint in 2018.
“Our focus is not on significantly expanding our current market presence, but on optimizing our current portfolio and real estate around the world,” Spotify CEO Daniel Ek said at a recent earnings call. We have shifted to reviewing needs,” he said, explaining that the company will scale down its business. Real estate costs are reduced as more employees choose to work remotely.
Spotify’s plans have taken the Manhattan office market another hard hit since the pandemic, pushing vacancy rates to record highs this year. Tech giants such as Meta and Twitter, which have driven office demand, have cut headcount and reduced the need for real estate.
But Spotify still needs to find a long-term business and takers willing to lend it back. setup In a deal the company signed in 2017, each of the 14 floors was extensively customized, equating to $33.29 million a year in rent alone, or $2.77 million a month. .
Streaming remains the mainstay of music consumption, so it’s hard to imagine Spotify’s downsizing would represent a significant upheaval. The platform continues to thrive among its peers, with more and more hit artists. 1 billion Spotify streams breakthrough levels of engagement Apple Music can’t touch
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