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music streaming giant spotify Plan to reduce footprint by subleasing 5 floors and 4 World Trade CenterBloomberg reports that the company continues to reassess its real estate needs.
Spotify occupies about 564,000 square feet of the 72-story tower and is reportedly looking to clear at least 85,666 square feet of land. subleased from of New York and New Jersey Port Authority In 2018, according to Bloomberg.
Spokespeople for Spotify, Silverstein and the Port Authority did not respond to requests for comment.
Stockholm-based Spotify Enable employees to work from anywhere from 2021 As a result, the company has decided to shrink its office space. In April’s first quarter earnings report, I wrote:.
“Our focus has shifted to optimizing our current portfolio and reviewing real estate needs around the world, rather than significantly expanding our presence,” the filing reads. “This will reduce our real estate footprint in certain locations and will result in the consolidation or sublease of some of our leased office space in the future.”
Spotify became the anchor tenant. silverstein propertiesThe 2.3 million square foot building was constructed in 2017 thanks to a contract with New York. $11 million less rent for that space, the Commercial Observer reported at the time. But many tech companies have looked to cut costs through offloading real estate. The industry has been hit hard in recent months Mass layoffs, hiring freezes, reduced income, etc.
twitter, Googleparent company of alphabet, Facebook parent meta and Amazon All have cut or sublet offices nationwide and are on Facebook spend billions of dollars on.in Manhattan at the same time Available sublet space has reached a new high It will grow to 22.1 million square feet in the first quarter of 2023.
Contact Celia Young at: cyoung@commercialobserver.com.
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