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Dropbox handing over 25% of San Francisco HQ back to landlord

102 points| pseudolus | 2 years ago |cnbc.com | reply

80 comments

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[+] davidw|2 years ago|reply
Riffing on that, I wonder how much of Bay Area wages "do not pass go" and go pretty much straight to landlords.
[+] fshbbdssbbgdd|2 years ago|reply
If they figure out how to reanimate historical figures with AI, I’m voting for Henry George.
[+] callalex|2 years ago|reply
It’s funny how we like to pretend there isn’t an aristocracy and landed gentry here.
[+] thereisnospork|2 years ago|reply
Probably on the order of a few to ~10 billion a month directly via apartments. Not counting secondary effects due to costs on business rent and wages to pay personal rent, nor tertiary effects like increased tax burden spent on homeless, subsidies for 'affordable housing', etc.

est 1-3 million renters @ avg $1,000 /month excess rent over fair value due to government enforced shortages. Personally it boggles my mind how this isn't the single issue among the relevant voting bloc.

[+] Barrin92|2 years ago|reply
a lot lol. When I relocated temporarily from Berlin to the Bay Area a few years ago I thought the pay raise was crazy. Then I saw that I'd almost pay 2k more in rent per month. And then I learned what friends with kids pay for schools and childcare.
[+] 3seashells|2 years ago|reply
Who are more often than not just the front of organized crime storing washed money..
[+] pizzafeelsright|2 years ago|reply
Dropbox got weird. First it was great. Then awesome.

Then something happened. Weird features were added. It felt very forced.

[+] plorkyeran|2 years ago|reply
They successfully built their core product and got it to the point where it only had long-tail improvements and maintenance left to do, but even if it didn’t have the complication of being VC funded you can’t really lay off half the company and declare yourself in maintenance mode once you’ve scaled up.
[+] kredd|2 years ago|reply
Basically every big corp implemented their own cloud storage, so they had to compete by adding extra features I would guess? I’m still happy customer for personal needs since I’ve had it for ages and too lazy to switch. But when it comes to work needs, it would be a hard sell. If you’re a corp you probably have everything integrated with Microsoft or Google. If all of your devices are Apple, you can just go with iCloud and not deal with 3rd party integrations. At the end of the day, you’re left off with less number of potential customers, and even then you have to fight with Box for customers.
[+] sottol|2 years ago|reply
Probably had to stoke that VC-fire once growth leveled off and add new "billion dollar ideas".
[+] nextstep|2 years ago|reply
Might have been around the time they stopped focusing on users and tried to embed themselves in the National security state. I guess around 2014 when Condoleezza Rice joined the board of directors.
[+] nbar|2 years ago|reply
Dropbox was amazing. The ability to share a url to any HTML file basically made the service a micro blog host.

Of course they then added “productivity” tools and removed the actually productive features like sharing HTML.

I’ve moved to Google too but still prefer the Dropbox GUI.

*ten year user of Dropbox

[+] omnimus|2 years ago|reply
Their product teams really dont know what they are doing. I dont think ive seen company that was trying to do so many thing over the years just failing with everything.

I dont even mean Dropbox Paper - thats actualy useful (acquired company).

* Paper documents after years of trying are still separate service and wont show up in you dropbox. Only new accounts have this.

* At some point they started to be universal API/backend for third party apps. Something they years later started to kill off.

* Vault their e2e part of dropbox got suddenly killed (was probably gimmick anyway but you were 100% that these files wont get accidentaly shared).

* They have half baked password manager that probably nobody uses because they might kill it on a whim.

* Bloated but somewhat ok screencapture tool that creates normal videos which is limited by recording 120 minutes at time. So you are already paying them but get this lol limit. You either have to delete old videos or pay more. Actually you can move the video to your dropbox but dropbox still counts it in their limit because the file has some metadata (which you can probably delete).

* The last nail is they started to play ball with Apple moving their client to some Apple API loosing bunch of features (including stuff like not being able to sync/backup projects from Final Cut) https://help.dropbox.com/installs/macos-support-for-expected...

If their product/management knew anything about their product they would make the invisible features and be the “pro” solution. Instead they compete with google drive on bloatedness.

[+] Groxx|2 years ago|reply
In addition to the other excellent comment here:

I think it's largely that they discovered the real money is in B2B. And once you go down that route, all you care about is checking feature-boxes, not whether anyone actually uses it willingly.

Pretty much every company that does that starts hemorrhaging users at some point. And there's not really any going back either, because they definitely won't shut down features to improve the core.

[+] saddd|2 years ago|reply
The first dinner I ever ate after arriving in SF was at their original HQ's cafe/restaurant, thanks to some friends who worked there. It was so good! I regret not having gone as a guest more often.
[+] Hamuko|2 years ago|reply
I've been wondering if Dropbox is struggling financially. I stopped using Dropbox a couple of years ago because Google Drive is a better deal, and now some weeks ago they started emailing me. I think I've gotten like 3-5 emails touting how great Dropbox is and that I should really be using it again.
[+] ChatGTP|2 years ago|reply
I stopped using my a year or so ago. The cost just seemed ridiculous compared to competitors.

I was a pretty happy user for a few years but I couldn’t justify it anymore.

[+] kristianp|2 years ago|reply
KKR will lose quite a bit of money on that property when they offload it, perhaps unless they can lobby the govt to do some kind of residential conversion.
[+] quickthrower2|2 years ago|reply
Opportunity to convert office space to living space?

Nimby-proof housing increase?

[+] readthenotes1|2 years ago|reply
Apparently it is incredibly expensive to convert office to living and meet most housing standards (windows, bathrooms, HVAC, etc.)

I recall a story about a month ago that a firm said they would be willing to have undertaken that cost for a tower in downtown San Francisco but the city, and it's wisdom, had passed an ordinance that required a certain percentage of new housing to go for low income people and thus for low rent and when that was baked in it made absolutely no sense (or cents).

So not only do you have the trouble of the cost of conversion, you also have the trouble of meddling do-gooders messing things up (because one of the easiest ways to reduce rent for everybody is to slam a lot of supply into the market)

[+] codezero|2 years ago|reply
From my experience going through a lot of offices in SF, they are really good at flexibly up and downsizing workspaces. This space will open to smaller companies or will be sliced and diced into sizes appropriate for anyone willing to buy for commercial purposes. Granted my experience comes from before work from home, so maybe things have changed, but I doubt it will change to residential unless the location was already mixed use.
[+] oldbbsnickname|2 years ago|reply
Zoning issues, time, and money.

An airbnb for hotdesk coworking is one possibility for space monetization, but I would probably want to limit it to people with Fortune 1000 email addresses and certain designated floors/areas for security reasons. One key enabler would be integration with corporate building security systems.

[+] mvncleaninst|2 years ago|reply
I don't think that would mesh well with the neighborhood character
[+] sfjailbird|2 years ago|reply
> we’ve taken steps to de-cost our real estate portfolio

> remote work is the primary experience for our employees,

Why do they talk like that? Like inventing new stupid words and torturing existing ones, instead of just straight forward saying what they want to say?

[+] tikhonj|2 years ago|reply
I figure it's because they're trying to sound corporate, because that's just how people imagine "official" communications have to sound. Clear, simple writing would be too casual!

It's possible to write corporate communications in a straightforward and effective style, but it requires a level of writing skill and a level of confidence that employees might not have, especially when the writing has to go through several levels of internal review by managers and subject to internal politics. The result is writing by committee that intentionally avoids even the semblance of personal voice.

[+] serf|2 years ago|reply
I always imagine that it's an intense statistical overview of the release by speech-writers.

"Reducing costs and saving money polls negatively, people relate it to dwindling cash reserves and that may affect share price, open up the book and find an as-of-now untested phrase that means the same thing, let's try that! 'de-cost' ? Might as well!"

[+] whateveracct|2 years ago|reply
Using nouns as verbs and verbs as nouns a la "de-cost" is classic corporate nonsense.

"What's the solve" etc

[+] saym|2 years ago|reply
It's like using "certified pre-owned" instead of "used".
[+] post_below|2 years ago|reply
Maybe a rhetorical question but I think there are a few answers. One is that some people think that's what professional sounds like, this sort of dated, verbose corporate "believe us, we're big and competent" messaging strategy.

I think it just lands as inauthentic and cold to modern audiences.

But it's been a popular strategy for generations, and people tend to market/message the way they've been marketed to.

Definitely notable that Dropbox doesn't seem to be thinking about brand strategy when writing these sorts of releases.

[+] Ylpertnodi|2 years ago|reply
The truth (plain English) hurts. Obfuscation works. God only knows on who, though. I just treat press-releases as puzzles, if only to work out the doublespeak.
[+] atleastoptimal|2 years ago|reply
Press releases as big companies is like playing operation with connotations, everything is fine tuned to minimize amortized risk
[+] soVeryTired|2 years ago|reply
Look to your own tortured words. Referred to a system as ‘performant’ recently?
[+] jessenaser|2 years ago|reply
Layoffs aside, I still hope that the office space doesn't get left behind as a project. The real interactions really matter.

For example, if there was a world were education was entirely digital, I would still want a place for students to interact in real life, not just online.

If (one poll) shows a 6% [1] preference for in office work, and employers can cut down on their costs, I fear that it might just not exist for the future.

[1] https://www.gallup.com/workplace/397751/returning-office-cur...

[+] panic|2 years ago|reply
Really, everyone should have places to meet and work in person, not just people employed by corporations. I wonder how these spaces could be configured to help clubs, hobby groups, support groups, political organizations, volunteer groups, part-time workers, and other people who may have difficulty finding a space to meet.
[+] troupo|2 years ago|reply
> For example, if there was a world were education was entirely digital, I would still want a place for students to interact in real life, not just online

You don't need an office or a school for that. However, we as a society somehow made all the activities outside office and school awkward, inconvenient or expensive.

[+] surgical_fire|2 years ago|reply
The logical conclusion is that if the poll is accurate, we only need 6% of the space currently allocated for office space.

It wouldn't disappear, it would only be severely reduced.

You can have real life interactions outside of office life. It might even be more meaningful.