Meta offers more Austin office space for sublease
Tech giant Meta, the parent company of Facebook, is easing out of yet more downtown office space.
Why it matters: Austin real estate is increasingly tied to the fate of Big Tech, and any persistent Silicon Valley downturn could damper Austin's post-pandemic recovery.
Details: Meta is subleasing over 100,000 square feet of space at 300 West Sixth St., per the Real Deal.
- The decision comes seven months after it opted to sublease 589,000 square feet at Sixth and Guadalupe.
What they're saying: "Our aim is to build a best-in-class remote work experience to help everyone do the best work of their careers no matter where they are," a Meta spokesperson told the Real Deal.
Of note: Meta cut more than 11,000 jobs in the fall and announced plans for 10,000 more layoffs in March.
By the numbers: In April, Austin's office market hit its highest vacancy rate (23.2%) since the Great Recession, per a report from JLL.
Yes, but: "Although the Austin market has seen a pullback in leasing, particularly from the tech industry, companies are continuing to hire, and the Austin unemployment rate remains below the Texas and national averages," the JLL report stated.
Zoom out: Office space available for lease in the U.S. is at a record high, as remote work revolutionizes American work patterns.
The bottom line: Even as some Austin employers, notably City Hall, are pressing workers to come back downtown, major tech companies appear to be backpedaling on downtown investments.
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