Thursday, May 4, 2017

Spotify eyes up new 60,000 square foot London HQ | Music Business Worldwide

Just a few months since news broke of Spotify signing a lease for a huge New York office, the streaming service is reportedly in talks to do the same in London.

Advanced negotiations to rent a 60,000 square foot space that’s triple the size of its current 20,000 ft² UK base are said to be underway with property investor Blackstone.

The space in question is swish art deco building Adelphi that overlooks the River Thames in London’s West End, according to the Standard.

It’s a Grade II listed building that has recently been part of a £30 million ($38m) redevelopment project after Blackstone purchased the property for around £265m ($342m) in 2012.

Rents are said to start from £75 ($97) per ft². In Spotify’s case, that’s equal to an eye-watering annual rental bill of £4.5m ($5.8m) a year.

If the move goes ahead, Spotify will be in the same building as weekly news, business and politics title The Economist, financial PR firm Finsbury and publisher Conde Nast.

The streaming service currently has an office in Oxford Circus location Argyll Street.

According to its last filed accounts, Spotify generated a £1.18m post-tax profit in the UK in 2015 (in 2014 it lost £1.2m).

It had 180 employees at the time (up from 2014’s 167) and the new office space will leave room for more.

In New York, Spotify has committed to taking 378,000 ft² on floors 62-72 of the Four World Trade Center.

It’s more than double the size of its current base and over 1,000 jobs will be created after the move.

At the moment, Spotify’s 600 employees in New York occupy a 140,000 ft² space in Manhattan’s Flatiron District.

Music Business Worldwide


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