Bahama Times

Monday, Apr 22, 2024

9 tech companies that have ditched San Francisco offices in 2022 are a warning sign for cities to rethink their reliance on big firms

9 tech companies that have ditched San Francisco offices in 2022 are a warning sign for cities to rethink their reliance on big firms

The tech exodus from San Francisco should be a warning to other cities that rely on tech companies to fill downtown office space.
San Francisco's once bustling downtown has become a ghost town as companies have left their offices. The city's office-vacancy rate grew by more than 4 percentage points from November 2021 to November 2022, to about 19%, according to Commercial Observer.

The exodus also is a double-edged sword that threatens San Francisco's financial health. A New York Times report published this month highlighted that local businesses like Mixt, a health-food restaurant, have struggled to maintain their business because high-income workers are no longer flocking downtown for their morning coffee or lunch salad.

Mayor London Breed has estimated that falling commercial property values could contribute to a $728 million budget gap over the next two fiscal years, Bloomberg reported.

Salesforce CEO Marc Benioff told Bloomberg that San Francisco needed "more diversity" in its economic and tax base, as well as more residential homes and cultural attractions downtown.

Meanwhile, layoffs have piled up at companies like Adobe, which reportedly laid off 100 employees from its marketing department in early December, and Airtable, which told TechCrunch on December 8 that it had cut 20% of its workforce. This suggests San Francisco's struggles with office vacancies may be far from over.

"The challenge in all of this is that we're kind of rebuilding to something that doesn't necessarily exist," Jeff Bellisario, the executive director of the Bay Area Council Economic Institute, told Bloomberg. "What does the new San Francisco look like? And I'm not sure we've totally figured that out yet."
Here's a roundup of major office moves in San Francisco from 2022 that indicate how dire the situation is:

Snap: Snap Inc., the company that owns Snapchat, terminated the lease on its 33,000-square-foot office in October. The company is going through a restructuring, which has included laying off more than 1,200 employees.

Twitter: People close to Twitter told The Times this month that Twitter had stopped paying rent at its headquarters at 1355 Market St. as the company, now run by Elon Musk, seeks to cut costs to improve its profitability. The paper also reported in late November that Twitter's staff dwindled from around 7,500 full-time employees to less than 3,700 since Musk took over in late October. 

Meta: The Silicon Valley Business Journal reported in early December that Meta, the parent company of Facebook, was planning to part with its more than 430,000-square-foot office space at 181 Fremont St. despite having eight years left on its lease. Meta leases more than 1.2 million square feet of office space in the San Francisco Bay Area, and CEO Mark Zuckerberg told investors during its third-quarter earnings call that it planned to spend up to $3 billion over the next two years to reduce its total office footprint by buying out leases.

Block: The San Francisco Chronicle reported in June that Block, the payment-processing company owned by Jack Dorsey, the former CEO of Twitter, did not plan to renew its lease at the end of the year for a 470,000-square-foot office in the Mid-Market neighborhood as the company embraced working from home.

Salesforce: The San Francisco Business Times reported in July that the software behemoth Salesforce was making more than 412,000 square feet of office space in its headquarters available to sublease as the company embraced a strategy it called "Success from anywhere. Careers everywhere."

Airbnb: In September, the short-term-rental giant offered to sublease more than 150,000 square feet of office space in its three-story building in San Francisco's SoMa District, the San Francisco Business Times reported. The company also put more than 300,000 square feet of office space up for sublease in nearby Santa Clara, another Bay Area office hub.

Lyft: The San Francisco Business Times reported in August that the ride-hailing firm Lyft planned to let go of 250,000 square feet of office space at its Berry Street headquarters over the next year, reducing the company's total space leased in the city by more than half.

PayPal: The local news outlet ABC7 reported in April that the digital payments processor PayPal planned to close its Market Street office on June 3, leaving PayPal with no footprint in the city.

Slack: Slack, a corporate-communications company, subleased more than 200,000 square feet of office space at 45 Fremont St. in February as it moved toward a digital-first working environment, the San Francisco Business Times reported. The report said the company still held a lease at 500 Howard St., near Salesforce's headquarters.
Newsletter

Related Articles

Bahama Times
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×