#Struggling Twitter puts two floors of Chelsea HQ on sublease market

Tech firm offering about 24K sf of growth space for short term deal

New York /
Apr.April 22, 2016 02:22 PM

Twitter’s growth troubles have been a trending topic for some time, and now the company is looking to sublease some real estate it set aside for expansion at its Chelsea headquarters, sources told The Real Deal.

The micro-blogging firm is offering about 24,000 square feet on the second and third floors at its HQ at 245 West 17th Street as short term “swing space” of two to three years, and is actively in discussion with tenants, sources said.

A representative for the company declined to comment.

The space is part of a larger block of growth space Twitter has been warehousing since it signed a lease for 140,000 square feet in a pair of adjacent buildings in Midtown South back in early 2014.

Asking rents at the time were reportedly in the $70s and $80s per square foot, and according to sources Twitter is offering the space in the mid to high $60s per square foot.

Cresa’s Eric Thomas, who represented Twitter in its initial lease, is marketing the sublease space. He declined to comment.

It’s not clear how much space in the building the company is actually using, and how much is sitting empty as growth space. It’s not clear how much of the space in the buildings, which American Realty Capital’s New York REIT purchased in the summer of 2014 for $335 million.

Twitter cut 336 jobs, or 8 percent of its workforce, in October and several top executives took flight amid panic over the company’s stock price, which has fallen as the company struggles to retain users. In February company announced that monthly active users had fallen from 307 million users at the end of the third quarter to 305 million.

Facebook, by comparison, has 1.59 billion users.

In San Francisco, Twitter reportedly put a full floor at its 760,000 square-foot headquarters at 1355 market Street on the sublease market earlier this year after scrapping plans to lease an additional 100,000 square feet nearby.

The company is scheduled to release its first quarter earnings Tuesday.


Related Articles

arrow_forward_ios
After Newmark partnership ends, Knight Frank inks deal with Cresa
After Newmark partnership ends, Knight Frank inks deal with Cresa
After Newmark partnership ends, Knight Frank inks deal with Cresa
(Getty, iStock)
Prospect of divided government rallies real estate stocks
Prospect of divided government rallies real estate stocks
(iStock)
Is winter coming? Real estate stocks dragged down by 4th week of market decline
Is winter coming? Real estate stocks dragged down by 4th week of market decline
Industrial REITs have been an outlier in 2020, returning nearly 27 percent (iStock)
As stocks rally, real estate investors try to pick winners
As stocks rally, real estate investors try to pick winners
From left: Empire State Building, One Vanderbilt and 220 Central Park South
REITs: A crystal ball for NYC’s commercial real estate
REITs: A crystal ball for NYC’s commercial real estate
Federal Reserve Chairman Jerome Powell (Getty)
Real estate stocks benefit from second quarter rally
Real estate stocks benefit from second quarter rally
Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg (Dorsey by Matt Crossick/PA Images via Getty Images; Zuckerberg by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)
Silicon Valley embraces “work from anywhere” ethos
Silicon Valley embraces “work from anywhere” ethos
Twitter CEO Jack Dorsey and 245-249 West 17th Street (Photo by Burhaan Kinu/Hindustan Times via Getty Images)
Twitter, big tenant in Midtown South, says employees can permanently work from home
Twitter, big tenant in Midtown South, says employees can permanently work from home
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...