Twitter has recently backed out of a real estate expansion deal and laid off staff, and today there's word that they are now subleasing an entire floor at their 1355 Market St. headquarters. The San Francisco Business Times reported the news this afternoon, citing several unnamed sources. A spokesperson for Twitter would not comment. This, coupled with reports of other tech companies shedding commercial real estate, has people wondering what lies ahead.
The SFBT noted that a growing number of tech companies subletting space could reflect slowing job growth and lagging performance. (For instance, in November we carried news of Dropbox trying to sublease 200,000 square feet at their Berry Street headquarters.)
However, the report cites several brokers who point out that other businesses are quickly stepping into the breach and renting the freshly shed space, and that is keeping the market strong.
As for Twitter, the SFBT notes that their 2,300 workers in SF (4,300 worldwide) make them the 10th largest employer in the city and the second-largest tech employer in town (behind Salesforce.com). Their new feature that will increase the character limit in tweets from 140 to as much as 10,000 is expected to launch by March 31.