Why is Twitter renting out its unused office space in SF HQ
In a recent bit, twitter is subleasing around 180K sq. ft. of its unused office space in its San Francisco HQ apparently in an effort to make better use of extra space. Well by some this is read as sign of trouble for the social media giant, for others this is in reflection to how shared and collaborative economy is on the rise as new businesses are looking to leverage resources including innovative workspaces to form coalitions and collaborations needed to achieve more with less
2016 has not been a candy for young startups in India. Downfall in funding coupled with mega lay-offs in the ecosystem has left these startups with vast unused office spaces built-up in the hope of constant sunshine. Flipkart, Snapdeal, Zomato, Grofers, Housing, TinyOwl and a host of others have shown the door to more than 10K in last few quarters. A 2012 Gurgaon based startup is now sitting on 20K sq. ft. unused office space locked-in until 2019. A Bangalore based HR startup is looking to sublease 28K sq. ft. space to multiple start-ups in a shared occupancy model. Some even worse with shutting down the shop all together. Askme shuts down, lays off 4,000
While on the other side, India is also witnessing an unparallel rise in no of startups incubating, expected to grow from 20K today to about 100K in next 10 years forecasted to employ more than 3.25 mn. The phenomenon has led to exponential rise in coworking spaces popping up in every corner of the start-up hubs primarily Gurgaon, Bangalore, Mumbai, Pune, Hyderabad. More and more are opting to start in these coworking spaces rather than setting up their own workspaces; with high fluctuation in the ecosystem and low visibility in the macro growth levers, these spaces offer all-inclusive option for startups to plug & play and grow on the go or vice-versa.
Though, Coworking spaces are much beyond the physical space. They offer an inspiring ecosystem where collaboration & coalitions co-exist. They offer workspaces devoid of hierarchy, designations & glass ceilings. Over and above, a fun with formal ambience and aesthetic makes them 1st choice of consideration for anybody starting afresh.
More and more employers are also now learning to make an effort in making workspaces vibrant, energetic, and attractive for employees to make them want to work everyday for the rest of their lives.
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Evidently, there will be less long-leases outside grade A development in the coming years as more and more businesses will opt for coworking or shared offices. The choice would primarily depend on nature of business and team size among others.
Back to the top, who would mind subleasing twitter office in the heart of SF?