Microsoft to sublease office space in San Francisco

Share post:

Microsoft is the latest tech giant to announce plans to sublease office space in San Francisco, a sign that cost-cutting is continuing in the sector. The company has listed up to 49,000 square feet of space in the city’s tallest tower, 555 California St., for sublease through May 2029.

The move comes just weeks after Microsoft opened a new artificial intelligence lab in the same building, where it is offering free co-working space for clients. However, the company is also laying off employees, with its LinkedIn subsidiary recently cutting 668 jobs.

The 779-foot-tall 555 California St. is owned by Vornado Realty Trust and former President Donald Trump. The building is still mostly leased, with tenants including Goldman Sachs, Morgan Stanley, McKinsey & Co., and KKR. However, the recent subleases by Microsoft and other tech companies are a sign that the office market in San Francisco is softening.

Microsoft’s decision to sublease office space is a reflection of the broader trend of tech companies downsizing their physical presence in San Francisco. The city’s office vacancy rate hit a record-high 34% in September, as more and more employees continue to work remotely.

Other tech giants that have subleased office space in San Francisco in recent months include Meta and LinkedIn.

The sources for this piece include an article in SFChronicle.

Featured Tech Jobs


Related articles

FTC says Microsoft’s layoffs at Activision Blizzard may threaten merger approval

The FTC has expressed dissatisfaction with Microsoft's layoffs at Activision Blizzard, challenging the integrity of the Microsoft-Activision deal....

Delaware court voids Musks $56 billion dollar compensation

Tesla's stock experienced a notable downturn following a Delaware court's decision to void CEO Elon Musk's massive $56...

IT World Canada strikes partnership with Canadian Cybersecurity Network

Goal is to make it easier for infosec pros to access each organization

Microsoft overtakes Apple as world’s most valuable company

In a notable shift in the tech industry, Microsoft has recently overtaken Apple to become the world's most...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways