Facebook owner Meta is leaving his London office as tech companies cut their space
- Meta paid £149 million to give up its lease, even though it still has 18 years left on the lease
- Big Tech has moved to cut costs and downsize offices around the world
- Meta rents another office building nearby that is owned by the same company
Facebook owner Meta has terminated its lease on a large office building in London as tech companies limit their space amid the global economic slowdown and the rise of hybrid working.
The company has paid £149 million to exit its contract for 1 Triton Square, a project next to Regent’s Park, despite having 18 years left on the site’s lease.
It comes at a time when Big Tech is trying to cut costs and downsize offices. This move affects cities like San Francisco, but has also spread to other major centers like London.
Meta paid £149m to exit its contract for 1 Triton Square, despite having 18 years left on the site’s lease
British Land, the owner of 1 Triton Square, said it expected Meta’s decision would mean a loss of around £5.6 million in half-year profits as it looks for a new tenant for the space be.
Despite this, the company reiterated its full-year guidance and said it would be supported by higher-than-expected rent arrears due to the Covid-19 pandemic.
The multi-million pound sum paid by Meta was estimated by analysts to be around seven years’ rent and, according to British Land boss Simon Carter, the property group would receive a cash injection to “accelerate” revamp plans. The office space should become more attractive for life science companies.
Agent Peel Hunt also noted that there was potential for the company to re-let the 310,000 square meter space at a higher rental rate.
In December last year, Meta announced that it would not move into the Triton Square office and would instead seek to sublet the space.
But a source close to British Land told the Mail that the property firm refused to allow this, leading to the decision to terminate the lease entirely.
Meta still leases another British Land office building nearby, 10 Brock Street, but has previously terminated leases in other cities such as New York to cut costs.