Spotify Technology SA plans to vacate five of its floors at Manhattan’s 4 World Trade Center by the end of the year and will seek to sublease them, according to people familiar with the decision.
(Bloomberg) — Spotify Technology SA plans to vacate five of its floors at Manhattan’s 4 World Trade Center by the end of the year and will seek to sublease them, according to people familiar with the decision.
The streaming company is among the largest tenants in the skyscraper, where it has about 564,000 square feet (52,400 square meters) of offices. The space it’s looking to offload includes more than 85,666 square feet the company took over from the Port Authority of New York and New Jersey when Spotify expanded its footprint in 2018, the people said.
A Spotify spokesperson declined to comment. A representative for the landlord, Silverstein Properties, didn’t immediately respond to a request for comment.
On a recent earnings call, Spotify Chief Executive Officer Daniel Ek said the company would look to pare back its real estate costs as more of its employees work remotely.
“Our focus has shifted more towards optimizing our current portfolio and reviewing our real estate needs around the world as opposed to significant expansion of our presence in current markets,” the company said in an April filing.
Spotify’s plan deals another blow to Manhattan’s office market, which has struggled with a glut of space since the pandemic. Vacancies reached a record high this year as companies permanently adopted hybrid work schedules. Major tech firms that were driving demand for offices, including Meta Platforms Inc. and Twitter, have cut staff, reducing their need for real estate.
–With assistance from Natalie Wong.
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