AUSTIN, Texas — Facebook parent company Meta is subleasing more office space in Downtown Austin.
The company confirmed to KVUE on Wednesday it is subleasing an additional 120,000 square feet in its existing office space 300 W. Sixth Street.
It comes after Meta placed 589,000 square feet of office space up for sublease in November. Meta signed a lease for the under-construction Sixth and Guadalupe tower in January. It opted to sublease the space instead of abandon the deal completely to avoid termination fees and maintain cost effectiveness.
A Meta spokesperson said the tech giant is subleasing the additional 120,000 square feet as it focuses on remote work. The company has laid off hundreds of workers in Austin as part of cuts that are happening company-wide.
“The future of work is here and we’re embracing it at Meta,” a Meta spokesperson said. “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. 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. We remain committed to Austin as evidenced of the many employees who have called Austin home for over a decade.”
The move is part of an ongoing trend of tech companies moving out of their Downtown Austin offices, creating a surge of sublease spaces available.
In April, Steve Triolet, senior vice president at Partners Real Estate, told KVUE in the Downtown Austin area, there is 1.8 million square feet of sublease space. Of that, TikTok put its six floors at 300 Colorado up for sublease. Earlier this year, Workrise Technologies put its two floors at One Eleven Congress up for sublease.
The Real Deal reports that Meta has already spent $413 million last quarter and could spend upwards to $900 million this quarter on ending office leases.
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