Spotify Leases Even More Office Space at the World Trade Center

Spotify Leases Even More Office Space at World Trade Center

Because for Spotify, paying just $33 million a year for office space at 4 WTC just isn’t enough.

Last year, a source shared several key financial details about Spotify’s lease in New York.

The company’s 4 World Trade Center (WTC) offices would include 478,000 square feet covering 14 floors.  This includes customization on each floor plan.

In total, Spotify would pay $33.29 million a year on base rent alone.  This works out to about $2.77 million a month.  The company had also taken an option to lease an additional 100,000 square feet at a future date.

Keep in mind Spotify lost $1.5 billion last year.  Having lost $584 million thus far, the company remains on track to lose more than $1 billion this year.  Spotify’s long-term 4 WTC lease agreement runs until at least 2034.  Overall, the company will pay $566 million.

Now, the company has signed a new deal to increase its total office space in New York.

Crain’s New York Business, a local business publication, found Spotify has now become 4 WTC’s second largest tenant.  The company has signed a new deal with the Port Authority of New York & New Jersey, adding 85,666 square feet.  Spotify subleased the entire 26th and 27th floors of 4 WTC.  The New York Human Resources Administration occupies around 608,000 square feet, making it the building’s largest tenant.

Asking rent remains unclear.  Yet, the Port Authority, which approved the deal in July, revealed the company would pay an additional $80.9 million over the life of the lease.  This includes deducting costs to build out the space.  The Port Authority would also pay a $3.3 million commission to Spotify’s broker, JLL, a real estate firm.

In total, the company has now leased around 564,000 square feet of office space at 4 WTC.  Other tenants at the building include Zurich Insurance Group, MediaMath, Hudson River Trading, and Global Atlantic Financial Group.  Spotify will now pay nearly $650 million over the lifetime of the lease.

After 10 years on the market, the company has yet to post a profit.  The new lease agreement partly explains why.

 


Featured image by Paul Hohmann (CC by 2.0).

5 Responses

  1. Never Been Laiden

    Wow, hope there isn’t another false flag there. It could kill or save music…

  2. lmao

    honestly my day was moody I couldn’t get a good mood and I click this and see the dollars burning , I died from laughter , fresh dmn hate

  3. Morons

    This is a huge scam company and i know what they are doing. May max martin benny blanco and especially dr luke and john rseznik burn in hell for it

    • Remi Swierczek

      They are getting extra space for UMG morons who induced streaming and advertising suicide and just entered into own custom SCREAMING!

      $300B of music goodwill obvious to TOTAL IMBECILE composted to $17.3B of subs and ads! and RIAA, IFPI and LABELS still experience multiple streaming ORGASMS!

  4. Michael Highly

    Honestly … now we lose trust in these guys. Spending so much while our music stream payouts decline – when the Global Music Reports tell us that streaming revenues increased by over 40% in 2017. Scam.