The Seattle Times reported that Meta is considering “leasing an office building in the Seattle area.”
Facebook has confirmed plans to sublease offices in downtown Seattle and Bellevue’s Spring District.
Microsoft has also confirmed it will not renew its lease on Bellevue’s 26-story City Center Plaza, which is set to expire in June 2024, the report said.
Ongoing work-from-home and layoffs are reducing demand for office space in Seattle and other US tech cities.
In November, Meta announced layoffs of 726 Seattle-area workers.
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A spokeswoman for Meta said it is trying to be financially cautious given the economic climate. Businesses are struggling, according to a report from commercial real estate firm Colliers.
Even offices that aren’t vacant are often half-empty due to remote work.A
“Given macroeconomic conditions and trends in hybrid work, we expect office vacancy rates to rise over the next few quarters,” said Connor McClain, senior vice president and leasing expert at Colliers. increase. .
Twitter CEO Elon Musk said last week that San Francisco office rents would drop further.
Craft Ventures co-founder and partner David Sacks tweeted that he was offered office space in San Francisco for the same price as in 2009.
Mr. Musk replied, “It will go down.”
Twitter has also been sued for failing to pay $136,250 in rent for one of its office spaces in San Francisco, and is evicting office space in Singapore and India.
The company’s headquarters are at 1355 Market St, and Twitter’s rent is also reportedly behind.
Amid fears of a global recession, San Francisco has seen the most work-from-home losses in the last three years of the tech pandemic, and expensive real estate has stalled the city’s growth.