Oct 22, 2023 23:30:00

Dropbox to surrender 25% of its headquarters floor to landlord

It has been revealed that online storage service

Dropbox will cancel approximately 25% of the floors at its headquarters in a building in San Francisco and hand them over to the landlord.

Dropbox hands over 25% of San Francisco headquarters back to landlord
https://www.cnbc.com/2023/10/20/dropbox-hands-over-25percent-of-san-francisco-headquarters-back-to-landlord-.html

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549

https://www.sec.gov/ix?doc=/Archives/edgar/data/1467623/000146762323000044/dbx-20231017.htm

Dropbox has been renting a 738,000 square foot (approximately 68,600 square meters) office in San Francisco since 2017. However, since the 2020 coronavirus pandemic, we have switched to mainly remote work, and have been worrying about how to utilize the office.

As a result, starting in 2022, 134,000 square feet will be leased back to a biotechnology company called Vir Biotechnology.

The remaining area is 604,000 square feet, of which 165,244 square feet, which is just over a quarter, will be surrendered to the landlord and a cancellation fee of $79 million (approximately 11.8 billion yen) will be paid. The expected completion date is the first quarter of 2025.

Dropbox told the news site CNBC, ``As a result of our transition to virtual first, we have taken steps to lower the cost of our real estate portfolio.''

In addition, in San Francisco, the office vacancy rate in the third quarter of 2023 is 30%, the highest level since at least 2007, and there are rumors that Uber may rent out part of its headquarters to OpenAI again. It seems that there is.