Zendesk

SF vacant office space tripled to 10M sq ft; rents cut to $20

Shaan cites a CNBC article: sub-leasable San Francisco office space jumped from 3M sq ft in 2019 to 10M in 2021, with ~$200M of real estate impairments (nearly $1B with lease write-downs across Salesforce, Dropbox, Uber, PayPal, Zendesk). Space that cost $90/sq ft is going for $20.

“So like, here's some of the numbers. Um, let me, so there's $200 million of real estate impairments in the past year since COVID It's almost a billion if you add in the lease-related write-downs from large companies like Salesforce, Dropbox, Uber, PayPal, Zendesk, just getting rid of their, their real estate. And so Dropbox itself has $400 million of impaired real estate right now.”