Facebook parent company Meta terminated its lease at a two-building, 457K SF Silicon Valley office complex previously leased by WeWork, The Real Deal reported.
Meta moved out of one of the buildings in the second quarter of this year and left the other over the last three months, according to TRD.
The impact of the company leaving the space behind was a big hit to the local office market. The vacancy was the Silicon Valley office market’s single largest of the year, TRD said, citing a Colliers Q2 report.
Meta had an opt-out clause in its lease with WeWork, which was originally supposed to go through July 2034, according to TRD. The coworking company leased the building in 2016 from then-owner Merlone Geier. The property is now owned by an affiliate of Brookfield Property Partners, which paid $630M for it last year.
Though Meta had described the WeWork space in 2018 as a temporary one, its move-out comes shortly after the company’s Vice President of Global Facilities and Real Estate John Tenanes said that the company would be rethinking its real estate approach and that scaling down its space could be part of that recalibration.
Earlier this month, Meta terminated an office lease in Manhattan and said it would freeze hiring.
Meta is very flexible about where its employees work and has said that its offices are only about half full on any given day.
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