Elon Musk is trying to cut more Twitter office space
Twitter is trying to sublet office space in New York as the tech company tries to contain costs.
According to data from real estate agent Savills, Twitter recently listed nearly 200,000 square feet (19,000 square meters) of space for subleases at 245 and 249 W. 17th St. in Manhattan.
An email requesting comment from Twitter was not immediately returned; The company previously fired its entire PR department. A spokesman for the Columbia Property Trust of Pacific Investment Management Co., the building’s owner, declined to comment.
Elon Musk has cut costs since acquiring Twitter last year. The company has cut jobs and has been accused of skipping rent payments for offices in San Francisco and London. Subletting the New York space could help Twitter cut costs, since most real estate contracts require tenants to pay rent for the duration of a lease, even if the space is unoccupied.
The 17th Street buildings were among a handful of properties held due to a recent default by Pimco’s Columbia Property Trust. The office owner said last week he was working with his lenders on a loan restructuring.
Twitter’s office exit is the latest real estate divestment by a major tech company. Facebook parent Meta Platforms Inc. has ditched some offices in Manhattan’s Hudson Yards, while Amazon.com Inc. also scaled back a planned expansion in the city, Bloomberg reported last year.
That adds to the concerns of many of the city’s landlords, who have relied on big tech companies to drive leasing in recent years. While financial services firms looked to increase space, Savills said nearly 19% of the city’s offices were available for rent in the fourth quarter.
Learn how to navigate and build trust in your organization with The Trust Factor, a weekly newsletter exploring what leaders need to succeed. Login here.
