Some major moves in tech facilities and offices is happening this week as Meta, the company behind Facebook, WhatsApp, and Instagram, ends its lease on a prominent office space in New York. Meta is walking away from a 200,000 square foot property with a lease valued at $110 million USD. The company claims that after recent expansions, the Park Avenue space was no longer needed.
This lease break was first reported by real estate news Twitter account StripMallGuy and further confirmed by Meta itself this week. The property in question, 225 Park Ave in New York City, served as a prominent space for Facebook which was leased during the COVID-19 pandemic. The company held the lease for around $110 million. However, it also acquired additional company space in Hudson Yards and Farley in the New York area. For this reason, the company claimed that the Park Avenue space was no longer necessary.
A Meta spokesperson shared a statement, which was shared by New York real estate news website The Real Deal.
“Two twenty-five Park Avenue South has served as a great bridge space to get us to our new offices at Hudson Yards and Farley,” a Meta spokesperson said. “We are working to ensure we’re making focused, balanced investments to support our most strategic long-term priorities. We remain firmly committed to New York and further anchoring our local footprint.”
Meta has moved aggressively to expand since rebranding from Facebook, including pursuing advancement of AR and VR technologies for opportunities in metaverse experiences. The company’s aggressive moves have cost it great deals of money and led to quite some losses per quarter. However, its various moves may also pay off soon as it prepares to share new products at Facebook Connect, such as Project Cambria.
Nonetheless, the cost of property, the increase in inflation rates, and the struggling global economy may also be part of Meta’s decision to move out of the Park Avenue property. As the company prepares to share its latest quarterly results, as well as Facebook Connect in October, stay tuned for further Meta news here at Shacknews.