Vacant office space that is on the market for lease and sublease continues to balloon, while landlords have started to file for huge reductions in assessment values to lower their property taxes, which is going to cut revenues further.
This comes garnished by stories in the New York Times that Twitter stopped paying rent on its leased office spaces, and that it was instructed not to pay vendors. At least one of those unpaid vendors – a Silicon Valley company whose software Twitter had licensed – filed a lawsuit last week in San Francisco Superior Court for nonpayment. It stated, “shortly after Musk’s purchase of Twitter closed, Twitter refused to pay the outstanding quarterly invoice, which was due on November 30, 2022, and Twitter disclaimed any obligation to pay any future invoices…”
The median price of single-family houses sold in November in San Francisco plunged by 11.4% from October to $1.50 million, and by 27% from the peak in April, according to the California Association of Realtors. A nasty-looking chart:San Francisco & Silicon Valley Housing Markets Puke Huge Price Drops, as Startups, Crypto, Tech, Social Media Make Total Mess | Wolf Street