San Francisco tech companies are sitting on record amounts of empty office space and offering perks to lure tenantshttps://www.cnbc.com/2021/05/14/san-francisco-tech-companies-sitting-on-record-amounts-of-empty-space.htmlCloudera exited some Bay Area office space early last year with plans to sublease it and move employees south to the software company’s Silicon Valley headquarters.
But the pandemic left the company with nobody to take over a full office, forcing it to take a substantial real estate write-down.
At DoorDash’s former headquarters in San Francisco, a tenant defaulted on rent a month into lockdown, resulting in lost income for the food delivery company, which was doubling as a landlord.
Airbnb said in its earnings report on Thursday that it took a $113 million impairment in the first quarter “related to office space in San Francisco that we deemed no longer necessary.”
Combined, those three companies have recorded nearly $200 million in real estate impairments in the past year after Covid-19 turned the Bay Area office market into a dead zone. ...
I wonder if this signals a nascent mini-Dot-Bomb 2.0 ... or simply Dot-Bomb 2.0.
