Tech giants Meta Platforms Inc. and Amazon.com Inc. are scaling back a planned expansion of new York offices.

Meta stops expansion on Broadway 770 near Astor Place

Amazon Cuts Its Plans for Hudson Yards Office Space

Facebook's parent company Meta has decided not to occupy an additional 300,000 square feet (27,870 square meters) of space on Broadway 770, a building near Astor Place where it is already located, according to people familiar with the matter. The company is also suspending plans to further build its new offices at Hudson Yards as it evaluates what to do with the space, said people who asked not to be named when discussing private information. 

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According to a person familiar with the matter, Amazon has also reduced the amount of space it intended to rent from JPMorgan Chase & Co. in Hudson Yards, cutting the square footage it seeks to capture. The agreement has not yet been signed.

Meta spokeswoman Jamila Reeves said the company remains firmly committed to New York and looks forward to unveiling the Farley Building near Pennsylvania Station in the coming months.

"There are often a number of reasons why we won't proceed with a particular transaction, including the use of an office," Reeves said in an emailed statement. "The last few years have brought new opportunities in the way we communicate and work. We are working to ensure targeted, balanced investments to support our most strategic long-term priorities." 

Amazon and JPMorgan declined to comment.

Many tech companies have moved to more flexible, remote work options since the pandemic began. At the same time, a broad decline in the stock market and growing concerns that the U.S. economy could enter a recession have prompted some companies to slow hiring. Meta has announced plans to slow or suspend hiring for some mid- and senior-level positions.

While Meta and Amazon are still building giant offices in Manhattan, the two companies' more cautious approach is a potential harbinger of future problems in the city's office market as businesses seek to cut costs and re-evaluate real estate strategies. New York City still faces a glut of office supplies, with more than 18% of vacant space despite a slight rebound in rent earlier this year, according to second-quarter data from Savills Research.  

Meta remains committed to the major leases it has signed in recent years with both Hudson Yards and the rebuilt Farley Building. Despite the fact that most of its employees worked from home, the firm continued to build its new offices and look for additional space in anticipation of even greater growth.

Meanwhile, Amazon also rented space at Hudson Yards in 2019 and shelled out more than $1 billion in 2020 to buy the Lord & Taylor building in midtown Manhattan for new offices.