Crown Estate sues Twitter over rent arrears

Twitter is being sued by the Crown Estate for allegedly not paying rent for its London HQ. The Crown Estate has filed a claim against Twitter in the High Court, alleging arrears relating to office space near Piccadilly Circus. It is now in discussions with the occupier. The Crown Estate took legal action after previously contacting Twitter about rental arrears over office space at 20 Air Street, W1, where Twitter had signed a £2.6m-a-year lease for the third floor. However, it is understood that this dispute relates to rent arrears on the first floor in the same building. This is not the first time that Twitter has been pursued for rent arrears. Earlier this month a lawsuit was also filed against Twitter relating to its headquarters in San Francisco, where the company reportedly owes $136,260 in unpaid rent. The social media giant has been cutting costs and staff since Elon Musk paid $44bn to take control of Twitter in October last year. Lawyers have observed that it could mark the start of a wave of claims against non-paying tenants this year. John Wallace, managing director at law firm Ridgemont, said: “The receding of the UK’s economy will inevitably lead to commercial landlords having to take action against non-paying tenants. “I would expect to see a sharp rise in commercial rent arrears claims in Q2 and Q3 of 2023, given the Office for Budget Responsibility’s prediction that a recession will until at least autumn 2023.” Wallace added: “Commercial tenants need to be proactive in communicating with landlords, as landlords have several tools at their disposal to enforce payment of rent arrears, either by initiating proceedings or seizing goods.”   To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo from Stanhope