Musk Cuts Costs By Scaling Back Twitter's NYC Office Space

In order to save costs, Twitter Inc. is looking to sublease office space in New York.

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Recently, Twitter advertised space at 245 and 249 W that is just under 200,000 square feet (19,000 square meters) for sublease. According to data from real estate company Savills, 17th St. in Manhattan.

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Twitter declined to respond right away to a request for comment; the firm had recently fired everyone in its public relations division. The building's owner, Pacific Investment Property Trust, declined to respond through a representative.

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Since Elon Musk took over Twitter last year, expenses have been reduced. The business has cut staff and been charged with failing to pay the rent on its San Francisco and London offices. Given that most real estate contracts require tenants to pay rent for the duration of a lease even if the facility isn't occupied, subleasing the New York location might help Twitter save money.

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The 17th Street buildings were one of several properties that Pimco's Columbia Property Trust has tied up in a recent default. This Monday, the office's owner stated that it was negotiating a loan restructure with its lenders.

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The office retreat by Twitter is the most recent real estate cut from a significant digital company. According to Trade Algo last year, Amazon.com Inc. and Meta Platforms Inc., the parent company of Facebook, both reduced their planned development in Manhattan's Hudson Yards and gave up some offices there.

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This is making matters worse for many landlords in the city who, in former years, relied on major technology companies to drive leasing. Although financial services firms have increased their need for space, as of the fourth quarter, just around 19% of city offices were available for rent, according to Savills.