Twitter sued for failing to pay rent at San Francisco headquarters

Photo by Alex Shultz

Twitter’s headquarters were seen in San Francisco on November 2. 18, 2022.

Anadolu Agency/Anadolu Agency via Getty Images

Twitter has been sued for millions of dollars over allegations of unpaid rent at the company’s San Francisco headquarters, according to a lawsuit filed Friday, January 19. 20.

The lawsuit is the culmination of months-long rumors that under new CEO Elon Musk, Twitter failed to pay rent for its headquarters at 1355 Market St. These rumors were originally reported by The New York Times. In the meantime, two other unrelated lawsuits have been filed against Twitter for nonpayment. Other stories have emerged that Twitter is not paying for janitorial services at its headquarters and that some rooms in the headquarters have been fitted with beds, the latter of which led to an ongoing investigation by the Planning Department and the Department of San Francisco Building Inspection. .

Shorenstein, the real estate investment firm that originally acquired the building at 1355 Market St. in 2011, alleged in the lawsuit that Twitter owed $3.162 million in unpaid rent for Jan. 1. 2023 — plus interest and late fees. The suit alleged that Twitter failed to pay rent in December. 2022 either; Shorenstein was able to secure the December rent due to Twitter’s $3.6 million letter of credit, which functionally served as a security deposit. The real estate company then drew about $265,000 from the remaining letter of credit to cover part of the January rent. That letter of credit balance has now been reduced to $1, according to the lawsuit.

Shorenstein said in the lawsuit that following Musk’s takeover last October, Twitter’s letter of credit was expected to increase to well over $3.6 million – from $10 million, in fact. But Shorenstein alleged that Twitter refused to replenish the amount withdrawn from its letter of credit to cover rent owed, and also refused to increase its letter of credit by $10 million.

Via a representative, Shorenstein declined to comment on the lawsuit. Twitter’s communications department was axed after Musk became CEO.

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