{"id":34893,"date":"2024-07-16T13:42:29","date_gmt":"2024-07-16T20:42:29","guid":{"rendered":"https:\/\/occupysf.net\/?p=34893"},"modified":"2024-07-16T13:42:30","modified_gmt":"2024-07-16T20:42:30","slug":"x-has-put-most-of-its-sf-hq-up-for-sublease","status":"publish","type":"post","link":"https:\/\/occupysf.net\/index.php\/2024\/07\/16\/x-has-put-most-of-its-sf-hq-up-for-sublease\/","title":{"rendered":"X has put most of its SF HQ up for sublease"},"content":{"rendered":"\n<ul>\n<li>Troy Wolverton and Patrick Hoge | Examiner staff writers |<\/li>\n\n\n\n<li>Jul 12, 2024\u00a0Updated\u00a0Jul 15, 2024 (SFExaminer.com)<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/bloximages.chicago2.vip.townnews.com\/sfexaminer.com\/content\/tncms\/assets\/v3\/editorial\/9\/01\/9012b370-4099-11ef-bcbb-5f4db769bbfe\/6691a6df7b35d.image.jpg?resize=400%2C267\" alt=\"X headquarters\"\/><figcaption class=\"wp-element-caption\">X headquarters, the home of the company formerly known as Twitter, stands at Market and 10th Streets in San Francisco on Monday, July 31, 2023. The social-media platform is looking to sublease most of its space in The City.Craig Lee\/The Examiner<\/figcaption><\/figure>\n\n\n\n<p>Social media company X has put about 70% of the space it leases in its San Francisco headquarters complex \u2014 including about half in its iconic headquarters building \u2014 up for sublease.<\/p>\n\n\n\n<p>Since last year, the Elon Musk-owned business has been seeking to offload two floors at 1355 Market St. totaling about 158,000 square feet, a source familiar with X\u2019s listing told The Examiner. It recently added a third floor to the mix, bringing the total it\u2019s put up for sublease to about 236,000 square feet, according to the source, who was not authorized to speak publicly about the matter and spoke on condition of anonymity.<\/p>\n\n\n\n<p>X&nbsp;<a href=\"https:\/\/www.businessinsider.com\/twitter-795-folsom-last-day-2012-6#sara-morishige-williams-the-wife-of-twitter-cofounder-ev-williams-is-a-talented-interior-architect-she-helped-build-out-the-old-nest-3\" target=\"_blank\" rel=\"noreferrer noopener\">has occupied the giant Art Deco structure<\/a>&nbsp;at the corner of Tenth and Market Streets since 2012 and leases 460,000 square feet there.<\/p>\n\n\n\n<p>The space it\u2019s made available at 1355 Market is in addition to 313,000 square feet in the adjoining building at 1 Tenth St it put up for sublease more than a year ago, according to the source.<\/p>\n\n\n\n<p>X has hired JLL to find a tenant for the \u201cexcess space\u201d it has at 1355 Market, according to a JLL representative. The JLL representative declined to confirm how much space the social media company is making available inside its main headquarters building.<\/p>\n\n\n\n<p>The San Francisco Chronicle first reported&nbsp;<a href=\"https:\/\/www.sfchronicle.com\/realestate\/article\/elon-musk-x-sublease-s-f-headquarters-19568418.php\" target=\"_blank\" rel=\"noreferrer noopener\">X\u2019s move to sublease its headquarters space<\/a>, although it reported the company was putting its entire space there up for sublease. That\u2019s not accurate, according to the source.<\/p>\n\n\n\n<p>X representatives did not respond to an email seeking comment on the sublease move. Peter Kelley, a spokesman for JP Morgan Chase, which co-owns the building with real estate firm Shorenstein, declined to comment. Shorenstein representatives were not immediately available for comment.<\/p>\n\n\n\n<p>As of the end of 2021, X, then known as Twitter, leased about&nbsp;<a href=\"https:\/\/www.sec.gov\/ix?doc=\/Archives\/edgar\/data\/0001418091\/000141809122000029\/twtr-20211231.htm\" target=\"_blank\" rel=\"noreferrer noopener\">700,000 square feet of space at its headquarters complex<\/a>, according to its 2022 annual report, the last it made public before Musk acquired it. That was&nbsp;<a href=\"https:\/\/www.sec.gov\/ix?doc=\/Archives\/edgar\/data\/1418091\/000141809120000037\/twtr-20191231.htm\" target=\"_blank\" rel=\"noreferrer noopener\">down from about 800,000 two years earlier<\/a>, according to its 2020 annual report.<\/p>\n\n\n\n<p>The amount of space X has made available across the two-building complex represents nearly half of\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/shorenstein.com\/case-study\/market-square\/\" target=\"_blank\">the structures\u2019 combined 1.1. million square feet<\/a>, including\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.loopnet.com\/Listing\/1-Tenth-St-San-Francisco-CA\/28235618\/\" target=\"_blank\">nearly all the space in 1 Tenth<\/a>, according to figures from Shorenstein and LoopNet, a marketplace for commercial real estate. The space it has put on the market at 1355 Market is on the fifth, sixth and seventh floors, according to the source.<\/p>\n\n\n\n<p>X\u2019s move to sublease much of its headquarters comes in the wake of the mass layoffs the company undertook&nbsp;<a href=\"https:\/\/www.sfexaminer.com\/news\/business\/elon-musk-takes-twitter-and-tech-deals-to-another-level\/article_c2bb41f8-e8c7-5235-be68-8374ca1d4ac2.html?=\/&amp;subcategory=226%7CBooks+%26+Literature\" target=\"_blank\" rel=\"noreferrer noopener\">following Musk\u2019s acquisition of it in late 2022<\/a>. From the time he purchased the then-Twitter until May 2023, the number of full-time employees at the company&nbsp;<a href=\"https:\/\/www.sfexaminer.com\/news\/business\/twitter-teeters-on-the-edge-after-another-1-200-leave\/article_fa76ce2e-67ae-11ed-8e1a-334c86fefc7a.html\" target=\"_blank\" rel=\"noreferrer noopener\">dropped from about 7,500<\/a>&nbsp;<a href=\"https:\/\/www.businessinsider.com\/elon-musk-chops-twitter-down-1000-employees-2023-5\" target=\"_blank\" rel=\"noreferrer noopener\">to about 1,000<\/a>, according to Business Insider.<\/p>\n\n\n\n<p>The company\u2019s move also follows a&nbsp;<a href=\"https:\/\/www.sfexaminer.com\/news\/business\/twitter-missing-rent-prompts-sf-uk-crown-estate-lawsuits\/article_01c54d28-9c24-11ed-b782-17e1be953f6d.html\" target=\"_blank\" rel=\"noreferrer noopener\">spate of lawsuits<\/a>&nbsp;that were filed against it alleging it had failed to pay rent on numerous properties, including at 1355 Market.<\/p>\n\n\n\n<p>Since Musk\u2019s acquisition, his controversial moves to&nbsp;<a href=\"https:\/\/www.nytimes.com\/2022\/11\/19\/technology\/trump-twitter-musk.html\" target=\"_blank\" rel=\"noreferrer noopener\">reinstate former President Donald Trump\u2019s account<\/a>&nbsp;and those of numerous far-right figures and&nbsp;<a href=\"https:\/\/www.cbsnews.com\/news\/elon-musk-antisemitic-comments-x-post-actual-truth\/\" target=\"_blank\" rel=\"noreferrer noopener\">his touting of an antisemitic post<\/a>, have spurred numerous advertisers to abandon or curtail their spending on X. Last year, the company\u2019s advertising revenue reportedly&nbsp;<a href=\"https:\/\/fortune.com\/2023\/12\/12\/elon-musks-x-is-seeing-ad-revenue-plunge-by-half-from-prior-years-and-is-expected-to-bring-in-just-2-5b-this-year\/\" target=\"_blank\" rel=\"noreferrer noopener\">fell by more than half<\/a>&nbsp;from the prior year.<\/p>\n\n\n\n<p>The space X is putting up for sublease adds to the glut of office space in San Francisco and particularly downtown. The City\u2019s office vacancy rate&nbsp;<a href=\"https:\/\/www.sfexaminer.com\/news\/business\/san-francisco-office-vacancy-rate-inches-to-new-record-high\/article_ae6ee95a-3280-11ef-8126-13745ca51379.html\" target=\"_blank\" rel=\"noreferrer noopener\">inched up to a new record of 36.8%<\/a>&nbsp;in the second quarter, according to the real-estate company CBRE. That empty space is affecting a wide range of economic sectors, from retail&nbsp;<a href=\"https:\/\/www.sfexaminer.com\/news\/business\/sf-record-empty-offices-hurt-contractors-who-tailor-spaces\/article_509539d6-3aed-11ef-ab02-5fce4f6ac7fe.html\" target=\"_blank\" rel=\"noreferrer noopener\">to construction<\/a>, and putting a drag on The City\u2019s economy.<\/p>\n\n\n\n<p>San Francisco&nbsp;<a href=\"https:\/\/www.sfexaminer.com\/news\/twitter-tax-break-approved-by-san-francisco-supervisors\/article_fdc2cde1-c8ce-52a3-9002-acbda6e7ccaf.html\" target=\"_blank\" rel=\"noreferrer noopener\">passed a controversial tax break in 2011<\/a>&nbsp;to convince the then-Twitter to stay in The City and move its headquarters to the Mid-Market area. It has been that district\u2019s anchor tenant ever since, helping lure other tech companies to the area and spurring the development of restaurants and bars. Twitter\u2019s decision to remain in San Francisco also helped to shift the gravity of the Bay Area\u2019s tech industry north from San Jose and Silicon Valley.<\/p>\n\n\n\n<p>But the area around X\u2019s headquarters has been in a slump since the onset of the COVID-19 pandemic, in large part due to the lack of office workers. Twitter was among the companies that most enthusiastically embraced remote work, telling employees in October 2020 they&nbsp;<a href=\"https:\/\/www.washingtonpost.com\/technology\/2020\/10\/01\/twitter-work-from-home\/\" target=\"_blank\" rel=\"noreferrer noopener\">could work from home permanently going forward<\/a>. Musk&nbsp;<a href=\"https:\/\/www.theguardian.com\/technology\/2022\/nov\/10\/elon-musk-scraps-twitter-work-home-staff\" target=\"_blank\" rel=\"noreferrer noopener\">later reversed that policy<\/a>&nbsp;\u2014 but did so as he was slashing staff.<\/p>\n\n\n\n<p>It\u2019s unclear if X\u2019s move represents a first step in relocating its headquarters. Musk has&nbsp;<a href=\"https:\/\/www.sfexaminer.com\/news\/technology\/elon-musk-hints-yet-again-that-twitter-hq-could-leave-sf\/article_ba668e46-fa57-11ed-9f05-1ffdf595b0d2.html\" target=\"_blank\" rel=\"noreferrer noopener\">indicated on multiple occasions a willingness to do so<\/a>.<\/p>\n\n\n\n<p>The erratic billionaire famously moved Tesla\u2019s headquarters to Austin, Texas, from Palo Alto in 2021, although he kept much of the electric automaker\u2019s staff in the area. Tesla still produces cars at its original factory in Fremont.<\/p>\n\n\n\n<p><em>If you have a tip about tech, startups or the venture industry, contact Troy Wolverton at&nbsp;<\/em><em><a href=\"mailto:twolverton@sfexaminer.com\">twolverton@sfexaminer.com<\/a>&nbsp;or via text or Signal at 415.515.5594.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Social media company X has put about 70% of the space it leases in its San Francisco headquarters complex \u2014 including about half in its iconic headquarters building \u2014 up for sublease. Since last year, the Elon Musk-owned business has been seeking to offload two floors at 1355 Market St&#8230;. <a class=\"continue-reading-link\" href=\"https:\/\/occupysf.net\/index.php\/2024\/07\/16\/x-has-put-most-of-its-sf-hq-up-for-sublease\/\"> Continue reading <span class=\"meta-nav\">&rarr; <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/34893"}],"collection":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/comments?post=34893"}],"version-history":[{"count":1,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/34893\/revisions"}],"predecessor-version":[{"id":34897,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/34893\/revisions\/34897"}],"wp:attachment":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/media?parent=34893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/categories?post=34893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/tags?post=34893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}