Dropbox amends lease agreement, to pay $79M in termination payments

In a regulatory filing, Dropbox disclosed that on October 17, it entered into a lease amendment to its office lease, dated October 6, 2017, as subsequently amended, with KRE Exchange Owner for its corporate headquarters in San Francisco, California, whereby the company will surrender to the landlord 165,244 square feet of office space and pay an aggregate of $79M in termination payments. The surrendering of space and payment of termination fees will occur in three tranches: 51,956 square feet and $28.1M paid in Q4 of 2023, 54,253 square feet and $14.9M paid in Q2 of 2024 and the remaining 59,035 square feet and $36M paid in Q1 of 2025. As a result of the amendment the company will avoid future cash payments related to rent and common area maintenance fees of $137M and approximately $90M, respectively, over the remaining 10 year lease term.