Class A office space in Manhattan is about $70/sqft, and the average office employee gets 150 sqft allocated (desk, hallway, conference room, supply closets...) Google is probably 170. That's $11900 annually that they save by not having an employee take up office space. No, it's not fungible on a small scale, but it's certainly fungible on a large scale: reduce your office needs by 100 people and you can rearrange de…
Manhattan leases also famously start at 10 year terms as the shortest. With all the secrets going around your average FAANG office, no way would any company sublease a partial floor. Maybe an entire floor, but that creates more issues with the complicated separate lobby and elevator systems they previously built These companies could maybe cut the costs in a few years, maybe in 10-15. Most of these employees working…
Why not? Turn it into a co-working space. Lease it to a start-up and put up a divider.