Dropbox’s $400M Real-Estate Loss and Office Rents in SF’s Biggest Office Glut(wolfstreet.com)
wolfstreet.com
Dropbox’s $400M Real-Estate Loss and Office Rents in SF’s Biggest Office Glut
https://wolfstreet.com/2021/02/19/after-shift-to-work-from-anywhere-dropbox-sees-400-million-loss-on-unneeded-office-space-amid-plunging-rents-in-san-franciscos-biggest-office-glut-ever/
4 comments
It's astonishing to me that Dropbox ever thought it needed a 750,000-square-foot headquarters building. Wow.
The article suggests they didn't - they just used it as an strategic investment.
"Dropbox, like just about all tech companies and many other companies in San Francisco, went on an office leasing binge in past years, leasing far more office space than they needed at the time. The logic was that there was a permanent shortage of office space in San Francisco, that rents would always go up, and that it was better to grab all you could get now, and sit on it vacant, and hope to grow into it over the years, thereby warehousing office space for later use."