Meta, the parent company of Facebook and Instagram, has surrendered its lease on one of its London office buildings for £149 million ($283 million AUD). In a move that underscores the shift in work spaces due to Covid-19, the tech giant opted to break its lease as a means to reduce costs.

In a move that saw Meta’s name splattered across headlines this week, the tech giant paid British Land, a leading FTSE 250 property developer, an eye-watering sum of £149 million to break its lease, located at 1 Triton Square, London. The space was refurbished and prepared for Meta’s occupancy in 2021, however, they never actually followed through, leaving the space completely unoccupied.

In spite of its surrendered lease, the company still maintains a large presence in London. With three operational sites, including a neighbouring building in Regent’s Place, it is speculated that these sites will likely continue serving as vital hubs for Meta’s operations in the UK.

British Land, whilst pocketing a substantial one-off payment from Meta to end their lease agreement, will see a 0.6% decline in earnings per share over the next six months to the following March. The company, however, remains optimistic about its financial outlook over the next year, with strong leasing activity and improved rent collections resulting from the Covid-19 aftermath.

Meta’s decision to break its lease strongly reflects the fast-evolving technology industry and their strategic choices about its real estate holdings.