San Francisco-based Salesforce, along with Meta, are marketing a combined 240,000 square feet of office space in Downtown Chicago, as reported by CoStar News.
Salesforce will reportedly offload up to 125,000 square feet of office space in the nearly-completed Salesforce Tower at Wolf Point, and Meta, about 115,000 square feet at CNA Tower.
The reason? It seems to be a combination of many factors.
Both tech companies have announced mass layoffs in recent months. Salesforce disclosed in January that it was cutting 10% of its workforce, or about 7,000 employees, while Meta disclosed plans to lay off 13% of its global staff—about 10,000 employees.
Rising interest rates and recession fears have caused job cuts and cost-cutting measures that continue to weaken office demand, and companies are reducing their real estate post pandemic due to pressure to shed expenses after rising stock prices, according to CoStar.
This is bleak news for office landlords who’ve been reliant on the tech sector for the last decade. That said, Google maintains its commitment to office space at the James R. Thompson Center, a move that is expected to bring thousands of workers to Chicago and restore foot traffic in the Loop.
It’s not game over for the office sector in Chicago. The past few years have proven the resiliency of the city and the companies that call it home, as they continue to evolve with the changing landscape.
“The future of work is here and we’re embracing it at Meta,” a spokesperson for the company said in a statement. “The past few years have brought new possibilities around the role of the office, and we are prioritizing making focused, balanced investments to support our most strategic long-term priorities and lead the way in creating the workplace of the future. We remain committed to Chicago and look forward to years of innovation ahead.”
