Lyft is lightening its office load by nearly half

Rideshare company to sublease 615K sf across four cities

Lyft's Logan Green with 441 Ninth Avenue (Getty Images, Google Maps)
Lyft's Logan Green with 441 Ninth Avenue (Getty Images, Google Maps)

This was probably not the lift office market landlords wanted.

Rideshare company Lyft is moving to reduce its office footprint at its four corporate offices across the country, Bloomberg reported. The San Francisco-based company has additional offices in New York City, Nashville and Seattle.

Lyft is aiming to sublease about 44 percent of its office footprint to other businesses. The four offices combine for 615,000 square feet.

The company in March announced permanent flexible work allowances, which has reduced its reliance on space for in-person work.

“While we continue to believe that in-person connections are important, many of our team members opted to work remotely after we shifted to a flexible workplace strategy,” a company spokesperson told the outlet.

The company has been eyeing ways to cut costs. Last month, it laid off 60 employees and eliminated its car rental business.

The exact amount of space being sublet at each location is unclear, but Lyft is a sizable tenant at a few of its locations. It is the second largest tenant at 441 Ninth Avenue in New York City, otherwise known as Hudson Commons.

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The company occupies 100,000 square feet at the boutique office property and pays about $94 per square foot for base rent. It also spent $17.6 million to build out its space at the property, which was purchased last year by a joint venture between CommonWealth Partners and California pension fund CalPERS for $1 billion.

Peloton is also looking to sublease some of its space at Hudson Commons after the company’s pandemic-fueled sprint slowed to a stop. The company listed 100,000 square feet for sublease in June; Peloton is the biggest tenant at the building, occupying 312,000 square feet.

— Holden Walter-Warner