Spotify Sheds More 4 World Trade Center Space in Sublease to StubHub
By Abigail Nehring August 5, 2024 12:51 pm
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Music streaming service Spotify (SPOT) shed three more floors at 4 World Trade Center.
Ticketing resale platform StubHub signed a sublease with Spotify for 103,000 square feet at the 72-story tower developed by Silverstein Properties, according to subtenant broker Savills.
A spokesperson for Savills did not disclose the terms of the deal, but office space on the 59th and 60th floors of the property was subleased for $62 per square foot earlier this year, as Commercial Observer previously reported. Asking rent for space Silverstein is marketing for direct availability at the tower is in the $90s per square foot, according to the New York Post, which first reported the sublease with StubHub.
The ticketing company, which is battling an antitrust suit and a federal lawsuit over claims of unfair service fees and plans to go public sometime after Labor Day, will significantly expand its World Trade Center headquarters. StubHub signed on for 44,000 square feet on the 59th floor of the neighboring 3 World Trade Center last year.
A source with knowledge of the deal said StubHub will keep the 3 World Trade Center office for some time and the sublease will more than triple its footprint across both buildings to 147,000 square feet.
Savills’ Scott Bogetti, who arranged the deal for StubHub along with Kirill Azovtsev, Michael Bertini, Brad Wolk and Will Joumas, said in a statement that the expansion will support the company’s growth.
“Structuring a deal that meets StubHub’s needs is a testament to the collaborative effort between all parties involved in this transaction,” Bogetti said.
Spotify was represented by Colliers (CIGI)’ Sheena Gohil, who did not respond to a request for comment.
The music streaming platform has steadily shrunk its footprint at the 2.5 million-square-foot office tower after announcing it was reevaluating its 564,000-square-foot office and putting five floors on the market last year. Spotify has since subleased portions of that to language learning app Duolingo and HR platform Rippling.
Other tenants at the Financial District tower include real estate firm Sterling Equities, fintech companies Hudson River Trading and Digital Asset, and financial services and ratings agency Morningstar.
Abigail Nehring can be reached at anehring@commercialobserver.com.
