Small tech companies may have to choose between investing in physical space or adopting a more flexible strategy, given their financial constraints. Twitter has continued to add offices in Silicon Valley, and video game developers such as Electronic Arts and Epic Games have expanded to locations such as Canada and North Carolina. But others have made cuts.
Zynga, a gaming company, offered its 185,000-square-foot San Francisco headquarters for sublease last summer as it decided that shrinking and relocating its physical office would make life easier for employees, said Ken Stuart, vice president of real estate at Zynga. Was. For San Diego, its new building in California will be less than half the size.
Mr. Stuart said.
In contrast, the biggest tech giants have “so much money that it doesn’t matter,” said Anne Helen Petersen, co-author of a recent book about the remote-work era, “Out of Office.” Due to her huge budget, Ms. Peterson suggested that such companies could continue to build offices without worrying about how much money they would lose if the buildings became obsolete.
“They’re hedging their bets,” Ms. Said Petersen. “If the future is fully distributed, ‘we will arrange a device for it.’ If the future is going to give everyone a rubber-band back in the office, the way it was in 2020, ‘we’ll go back to it.’
At Tempe, the two-story WeWork co-working space at Watermark, one of the premier office spaces, was buzzing with activity this afternoon. Upstairs, Amazon has rented the entire floor.