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Spotify Looking to Sublease Offices at 4 World Trade Center

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Spotify Looking to Sublease Offices at 4 World Trade Center

By:  Benyamin Davidsons

Spotify Technology SA is planning to downsize its office space at Manhattan’s 4 World Trade Center by the end of the year, and is looking to sublease the space, as reported by Crain’s NY.  The music streaming giant says it will vacate five of its floors at the skyscraper, where it currently has a total of roughly 564,000 square feet of office space.  The company will look to sublease more than 85,666 square feet of its office space.

Spotify’s downsizing will deal another blow to Manhattan’s ailing commercial real estate market.  A spokesperson for Spotify declined to comment. A representative for the landlord, Silverstein Properties, didn’t immediately reply to a request for comment from Crain’s.  In a recent earnings call, Spotify Chief Executive Daniel Ek said the company was seeking to tone down its real estate expenditures, since many of its employees are still working remotely.   “Our focus has shifted more towards optimizing our current portfolio and reviewing our real estate needs around the world as opposed to significant expansion of our presence in current markets,” Spotify said in an April filing.  In January, Spotify had announced that it would be cutting 6 percent of its workforce in the United States, or about 600 of its roughly 9,800 employees, per Bloomberg News.  Other tech companies, including Amazon, Meta and Microsoft Corp., had also announced cuts, in a broad bid to slash costs due to the shaky economic outlook.

Spotify, the Swedish audio streaming and media services provider was founded in 2006, and currently boasts roughly 210 million paying subscribers and a total of more than 527 million monthly active users.  The streaming company, founded by Daniel Ek and Martin Lorentzon, is currently listed on the NY Stock Exchange.  The company boasts offices in 43 cities around the world, including Stockholm, London, Berlin, Brussels, Amsterdam, Paris, Milan, Mexico City, Los Angeles, Atlanta, Chicago and New York.  Its US headquarters is in NYC’s Flatiron District.

In February 2017, Spotify had announced the expansion of its U.S. operations by opening its Lower Manhattan office at 4 World Trade Center, adding roughly 1,000 new jobs.  As per Crain’s, in 2018, Spotify had become the second largest tenant at the building, taking on an additional 85,666 square feet of space at the then-fully occupied tower, subleasing the added space from the Port Authority of NY & NJ for a period of 15 years.  Earlier in 2018, the company had added 100,000 square feet of space, to its already impressive 378,000 square foot office.

The 78-floor tower, soaring 978 feet in the sky, was completed in 2013 by developer Silverstein Properties, with a $1.67 billion price tag.  The building boasts 55 elevators and a total of 2.3 million square feet of space.  The original nine-story low-rise office building at 4 World Trade Center, was severely damaged by debris from the neighboring buildings in the September 11 terror attack.



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