Dropbox handing over 25% of San Francisco HQ back to landlord as commercial real estate softens
Publishing timestamp: 2023-10-20 19:20:10
Summary
Dropbox is giving back over 165,000 square feet of its San Francisco headquarters to its landlord as the commercial real estate market in the city continues to soften due to the Covid pandemic. The company has agreed to surrender the space and pay $79 million in termination fees. This move reflects the weak demand for office space in the city and suggests potential challenges for companies that signed large leases before the pandemic. The office vacancy rate in San Francisco is at its highest level since at least 2007. Dropbox has been transitioning to remote work and has been trying to figure out what to do with its leased space. The subleasing market has deteriorated, leading to this decision.
Sentiment: NEGATIVE
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