Nothing But Money: Spotify’s New Offices Are Highest End of the Highest End Real Estate
Remember that Spotify is continually carping about how much they have to pay for their one product–music–and how they can’t seem to turn a profit? According to World Property Journal:
Spotify, a digital music service provider, has signed a deal to acquire 387,243 sq. ft. of Class A office on lease at 4 World Trade Center. The agreement is of 15 years with the building owner Silverstein Properties, reported by a real estate consultant JLL.
New York Governor Andrew Cuomo announced during a press conference on Wednesday streamed via Facebook Live as well as via a series of tweets that the digital music company is moving into Four World Trade Center. Spotify will soon be neighbors to other big brands in the building, such as the Lower Manhattan outpost of Chef Mario Batali’s Italian food emporium Eataly.
Headquartered in Stockholm with offices scattered around the world, Spotify already occupies considerable real estate in Manhattan’s Flatiron District. But it doesn’t look like Spotify is moving as Cuomo said Spotify will be create 1,000 jobs at the new floorspace.
Cuomo closed out his announcement with his own official Spotify playlist [no doubt the handiwork of Spotify’s in-house politico, Jonathan Prince].
“I hope Spotify’s expansion sends a clear signal to the tech community that New York is open for business,” said Horacio Gutierrez, Spotify’s general counsel, according to Cuomo’s tweet.
Right–because the tech community was so in doubt about whether New York was “open for business.” I wonder how much it costs for a governor to promote a playlist? No plug-ola here, though, it’s not radio.
So how much does 387,243 square feet of office space in 4 World Trade Center cost Spotify? We don’t know yet, but probably will if they file for an IPO. Just as a reference, a co-working space in One World Trade Center (nice but not as nice as 4 World Trade Center evidently) costs $750 a month per cubbyhole (or did). So that’s what you pay for a desk and a phone.
Here’s what 4 World Trade Center looks like.
You have to ask yourself why it is that Spotify need to be in the poshest digs in Manhattan while they are poor mouthing about royalty rates? I’d be happier if they just paid their rent deposit into TJ Martell Foundation and bought a building in Poughkeepsie. At least they’d have a tax deduction and an appreciating asset.
But I’m just a country lawyer and I’m not as smart as these city fellers.