California Globe: Snap, the parent company to popular social media sites such as Snapchat, became the latest tech company to pull out of San Francisco this week due expensive San Francisco leasing prices and more workers in the company working at home.
This week alone, San Francisco has seen more retail establishments leave the city due to high crime rates, and Mayor London Breed giving a renewed effort in trying to convince companies not to leave offices in the city. As part of a greater trend, companies choosing to leave pricey offices in favor of more work-from-home positions, something which employees also want to have more time with family and for leisure, have hurt cities nationwide. However, with San Francisco having a more tech-based economy, and thus having more people switching to remote work, the city has been harder hit than most American cities as a result. While cities such as New York and Los Angeles have managed to climb above the 40% filled office space mark since the end of the COVID pandemic, San Francisco has been stuck under it, with nearly 2 out of every 3 offices remaining vacant in the city.
The decision by Snapchat to close it’s 33,000 square foot office space in the city this week, a part of it’s latest restructuring to save money, was not an easy one. Snap had signed a long-term lease, with the lease not set to expire until November 2024. But with costs running high, the company decided to pay penalties now than be tied in the city for the next two years under a fixed price set in 2017 at the height of the tech boom. more
couldn’t of happened to a more a-hole city.
Didn’t mention where they are going though, they have a huge and relatively new (several years) campus in West L.A.
They’re not moving it. They’re shutting it down. Part of a 20% employee reduction. Now they can all stay home.
They have offices all over the world. They’re leaving San Francisco because of the stigma it now has. It’s the city of poop, piss, and crime, that’s the stigma businesses do not want placed on them.
Supply and demand means they’ll just lower the cost, until all the offices are full. Right? Nobel Bernanke?
Well at least the homeless ought to be getting 33,000 sq/ft of living space. It is a sanctuary city, right?
“Supply and demand means they’ll just lower the cost, until all the offices are full. Right?”
WOW. Ignorant statement as usual. What’s their monthly nut? Especially if they built it BEFORE THE COLLAPSE. That’s not how a free market works. However that is how communism works. Everyone loses.