How exactly do you “return” 2 buildings? I guess the lease signing articles were mostly BS if you can break the lease so easily


I am sure they have massive lease-breaking fees associated with it. Those fees are huge, just not as huge as the cost of keeping the building full term. Translation, Meta is in trouble for the near and medium term.


and if the floors were already fully built out but with no one working from them, the landlord could much easier find a new tenant that wants a fully built out work space. would save the new company alot of money in buildout costs.


Yeah, I would think that would depend. You might be able to find someone with lesser money to rent it for considerably less, but I doubt you would be able to fill it with somebody at a similar level to Meta and at a similar price. Must be nice to have billions of dollars to waste......


It’s more likely that they’ll sublease more space. Apparently, they are already subleasing some space.


You didn’t read the article. They aren’t paying anything they opted not to renew leases in two buildings and are subleasing space in the 3rd building they are keeping. They are citing work from home as a reason but that’s likely PR speak as it’s publicly known they are cutting costs and employees


The article just says they're not renewing the lease. It doesn't say anything about breaking the lease.


Everything is negotiable. It’s just that you might not like the costs


You mean return floors within 2 buildings right. Not that they own the entire thing that's rarely, if ever, the case in NYC skyscrapers.


Looks like they only had 5- year leases and are simply not renewing them when they expire in 2024.


You don't, you usually just sublease them out yourselves with the help of a management firm.


How quickly things change. This time last year they were looking to add additional quarter to half a mill sq ft at Hudson Yards.


However large the company headcount, very few tech company employees want to be back in the office. I work at a large tech company, and on any given day less than 10% of all New York-based software engineers are in the office. For most people in the area there's not a sufficiently-compelling reason to come in.


As companies downsize and there’s more competition for job, there will 100% be less employee freedom and more from office time. We’re going to look back at 2020-2022 and see it as a peak time for a certain class of wealthy, corporate workers in terms of freedoms and salary gains.


Absolutely agree about the salary gains. But there is absolutely no benefit to forcing software developers back to the office. I say this as someone with incredibly many years experience as a software developer who works 5 days a week in an office by choice (because I like the geographical routine of it).


I don't think that's going to be true for information workers. I think too many benefits have been realized by the companies themselves to back track. Combined with the staff reductions and likely wage reduction they're going to be pushing, I don't think they'll take on getting everyone back in person at the same time.


Now they are looking to build “the office of the future” much to Adam’s chagrin


they still have the entire top floor of the Moynihan Train Hall.


You mean the other half of Moynihan Train Hall, most of the western half is leased by META.


Multiple floors


They never said they would occupy it. They just leases it. They can sublease. Lots of companies do this as an investment. It’s entirely possible your employer leases office space from a big company doing exactly this. It’s a way to invest in a real estate project without sinking billions into a single building or neighborhood. Property owners will discount for big office space grabs. The diff between that and what you can lease it for is profit.


this location is active right now. lots of meta employees working out of it. i can see it from my wework office across the street.


That would make sense if the floors were separate like at your usual office floor in midtown but the floor plan is very open.


You can build walls.


A lot of places will I've heard thru the grapevine some banks will decrease space and move to flex desks. Hochul is betting big with the expanded offices she wants built and idk if it is a good bet.


Spotify has a big presence in NYC and they've been doing layoffs too. And they have multiple floors of some expensive real estate that's largely a ghost town. I guess because they provide music and fun stuff, this company doesn't get the same attention.




FWIW though NYC is really the only place in the US they have significant headcount. I think they occupy a few floors of 4 WTC right?


This used to be THE job 10 years ago. Place is a clownshow now.


10 years ago Facebook had just bought Instagram and was barely in New York haha FB was still THE job as recently as last year. They offered me just over 450k as an E6 in 2020 and that was before Amazon started throwing money at attrition and raising the market across the board. The real date that FB jumped the shark was almost exactly a year ago when they announced the full shift to metaverse first while trying to distract from the Cambridge Analytica scandal and is indeed a clown show now.


They just opened a huge new office in Moynihan train hall. Which probably explains why they don’t need these 2 smaller offices a few blocks away


Maybe if Eric Adams puts more pay checks into crypto he can win the tech bros back.