San Francisco: Twitter CEO Elon Musk Sunday said that office rentals in San Francisco will further drop, as the city is reeling under the pressure after massive tech layoffs and company offices being shut.
David Sacks, Co-founder and partner at Craft Ventures, tweeted that he got offered office space in San Francisco for the same price as 2009.
Musk replied: “It will go lower”.
Twitter has been sued for failing to pay $136,250 in rent at one of its office spaces here.
According to a complaint filed by landlord Columbia Reit, Twitter is late on rent at 650 California Street on the edge of Chinatown, USA Today reported last week,
The lawsuit was filed December 29 in state court in San Francisco.
The company’s headquarters are located at 1355 Market St, where Twitter has also reportedly fallen behind on rent.
Musk also converted rooms at the Twitter headquarters into small bedrooms, featuring unmade mattresses, drab curtains and giant work monitors.
The beds were prepared for remaining “hardcore” staffers to be able to stay overnight at the office.
Sources told Forbes that there were maybe “four to eight such rooms per floor” at the Twitter HQ.
Amid global recession fears, San Francisco stands to lose the most as work-from-home in the last three years of the pandemic at tech companies and expensive real estate has stalled the city’s growth.
–IANS