Facebook is ditching one of its earlier Manhattan office spaces in another sign that Big Tech’s appetite for real estate is not as all-consuming as it seemed a few years ago.
The company, known as Meta, terminated its lease at 225 Park Avenue South, where it occupied more than 200,000 square feet.
After leasing more than 2 million square feet at Hudson Yards and the Farley Post Office redevelopment, Facebook no longer needed the Midtown South office, a spokesperson for the social media giant told The Real Deal.
“Two twenty-five Park Avenue South has served as a great bridge space to get us to our new offices at Hudson Yards and Farley,” the spokesperson said. “We are working to ensure we’re making focused, balanced investments to support our most strategic long-term priorities. We remain firmly committed to New York and further anchoring our local footprint.”
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Representatives for the landlord, Orda Management, did not immediately respond to requests for comment.
Facebook first leased its space in the property in 2016. Terms of the deal were not available, but if it was a standard 10-year lease that would mean Facebook scrapped the agreement with about four years left.
While Facebook has exponentially grown its real estate footprint in the past several years, it’s recently been pulling back. This summer, Meta backed out of a 300,000-square-foot expansion at Vornado Realty Trust’s 770 Broadway. It also paused plans to build out its Hudson Yards space. The company’s stock is down nearly 60 percent so far this year.
Amazon also reportedly walked away from an expansion it was working on at Brookfield’s 5 Manhattan West.