In a move that could reshape the tech landscape of San Francisco, Elon Musk's X (formerly Twitter) is looking to sublease a significant portion of its headquarters. As reported by Rya Jetha for Bloomberg and Christiaan Hetzner for Fortune, the social media giant has hired real estate firm JLL to market approximately 790,000 square feet of office space in the heart of the city's Mid-Market neighborhood.
The decision to potentially vacate such a large area of prime real estate sends ripples through San Francisco's already struggling office market. With the city grappling with the highest office vacancy rate among major U.S. metro areas at over 36%, X's move could further exacerbate the situation. This development comes amid Musk's ongoing criticism of San Francisco's policies and what he perceives as the city's "corrosive" ideology.
While X has not officially confirmed plans to relocate, the move aligns with Musk's previous actions. In 2021, he moved Tesla's headquarters from California to Texas, citing issues with pandemic lockdowns and state policies. The tech mogul has been vocal about his dissatisfaction with San Francisco, even suggesting at one point that the Market Street building could be repurposed as a homeless shelter.
The potential exodus of X from its San Francisco roots could symbolize a broader shift in the tech industry's relationship with the city. As companies reassess their need for expansive office spaces in the post-pandemic era, and as concerns about urban issues persist, the future of San Francisco as a tech hub hangs in the balance. Whether this move represents a temporary adjustment or a harbinger of a larger tech migration remains to be seen, but it certainly adds another chapter to the ongoing saga of Elon Musk's tumultuous relationship with the City by the Bay.