Spotify is lowering the volume on its office space at Silverstein Properties’ 4 World Trade Center.
The streaming service is seeking to sublease five floors at the Lower Manhattan property, Bloomberg reported. At least 86,000 square feet of its offices are up for grabs, the same amount of space Spotify sublet in 2018 from the Port Authority of New York and New Jersey to expand its footprint at the building.
The platform’s deal for the 26th and 27th floors was for just over 15 years. The Port Authority was set to earn about $81 million over the course of the lease.
Spotify became the second largest tenant in the property with the additional space, which brought its U.S. headquarters taking up 564,000 square feet. But CEO Daniel Ek hinted at a possible office reduction in a recent earnings call as employees continue to work remotely.
Spotify joined the Silverstein building in 2017, taking 378,000 square feet. It enjoyed the digs so much that it took another 100,000 square feet before that year was through.
A representative from Silverstein Properties did not immediately respond to a request for comment.
Spotify’s drawback follows in the footsteps of other prominent technology companies that have reduced footprints or plans in Manhattan. After a leasing binge in the wake of the pandemic, the persistence of remote work and economic uncertainty drove tech firms to reverse course.
Meta, the parent company of Facebook and Instagram, didn’t renew its leases at Related Companies’ 30 and 55 Hudson Yards. Those expirations will free up 250,000 square feet next year.
Weight-loss app maker Noom is trying to sublease all 113,000 square feet of its space for $75 per square foot at Brookfield Properties’ Five Manhattan West, aka 450 West 33rd Street, according to sublease specialist Ruth Colp-Haber. The space, which Noom itself sublet in 2020 from advertising agency R/GA, includes 330 workstations and a mix of conference rooms and meeting spaces. Noom’s lease runs through 2030.
Amazon was in talks for space at Brookfield Properties’ 5 Manhattan West in Hudson Yards. Last summer, however, the e-commerce giant rolled back on its planned office expansion.
— Holden Walter-Warner
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