Yeah exactly. If they signed a multi-year lease, they are still on the hook for the same amount of money but the space won't be used. It might feel bad but it was already budgeted for.
That actually sounds like a LOT of space compared to a 2-bedroom apartment in Brooklyn that would cost quite a bit more....
But even then, you can put 4/5 people comfortably in a 2-bedroom in Brooklyn if it's designed for it, and it's not going to cost you multiple times an engineer salary.
It might not scale as well though if you need to own your own campus with security, catering and all that.