That this deal falls apart in the last minute. Something, anything, president cites national security, etc. After all Broadcom is a company working with Chinese military. I just hate the fact the ELT cut and run. I would just love to see them come back to work.
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Why would there be no amenities?
CA doesn’t own the building so they aren’t tearing down anything. But they still hold the lease and are paying for it. I think the other guy’s point is why would someone sublet a floor with no amenities? It takes 20 minutes to go anywhere from Islandia for lunch.
They're not tearing down the gym and cafeteria... CA is just not paying to operate them anymore. A sublettor could easily bring in their own services to run them.
I saw that sublease document for the third floor. How do they advertise the cafeteria and gym when it’s being shut down? Is someone else taking over?
@VF7vtEd-3gjs Your math is wrong. That cost per square foot is per year, not per month. And the sublet rate is closer to $21 a sq ft according to a search on loopnet. CA pays around a million or so a month in rent for Islandia.
By the way, Looks like the third floor in the tower is immediately available, so that was on CA not Broadcom. Easy enough to do some more floors after the layoffs.
https://images1.loopnet.com/d2/-XHPGLMQ9hiobCiKn-nr485xS-xNTkP4diHnmBi29dk/document.pdf
The floor is 63,000 square feet which would hold 300-400 people.
I’d say the more likely scenario is to move everyone to the first and second floors and sublet the rest for a couple of more years.
The other variable is the data center with backup in Lisle. It’s hardly used compared to years past but still a factor
@VF7vtEd-3tis, why? There are roughly 1000 people in Islandia today. Maybe 800 now with layoffs and departures. The tower easily holds 200-250 people per floor.
Let’s assume that out of the 800, only 25% are gone day one and 25% gone after 6 months, leaving 400. Yes, that would equate to 2 floors. I think it will be more cuts than that but fine.
At $25-30 a square foot, I think CA probably pays around $10 million a month, give or take, for the space they use (estimating 400,000 ft for the campus less the expansion wing). Closing down the cafeteria, gym and the CDC doesn’t reduce that amount, just the personnel and other costs.
Using only 2 floors out of 6 still means Broadcom pays $10 million a month.
If there is a dearth of rental space then I’m sure subletting it would be an option. Broadcom could take floors 1 and 2 and then sublet 3-6.
But if there is sufficient commercial space available, they could negotiate a great deal in another building and pay an exit fee for Islandia. 150 sq ft per person x 400 people x $30 per square foot = $1.8 million a month. $30 per sq ft is for Class A space, so it’s not horrible.
Even with including moving costs you are talking $8 million a month, or nearly $100 million a year, in savings.
Do the math.
Why would they keep it? It's a corporate HQ. Broadcom has one of those already. It would make much more sense to move to a smaller building in Hauppauge or somewhere nearby.
@VF7vtEd-1lkk And like it was mentioned many times: even if the lease ends Broadcom will most likely maintain some space in Islandia for the near future. If you think they will straight up nuke the entire office you are delusional.
The lease is up on islandia in 2021. It will not last longer than that. Period.
I don't see where all of this paranoia and doomsaying is coming from. No one in Islandia has been told the office is closing down. Again I know there will be a RIF here but to shut the entire place is very unlikely all things considered.
That is the most ridiculous thing I have read on this board. This is the sh--tiest management I have ever seen. Everyone will be happier working at confident companies.
Islandia ppl seem to have their heads in the sand. It's going away sooner or later.
Octane bought the company only for the mainframe revenue. Does Islandia have any mainframe development left? If you're not in mainframe, you will probably be laid off. I'm in NA mainframe development and very worried.
I can’t for the life of me understand why people are so delusional to believe Islandia won’t be impacted.
I was there 15 years ago when the building was filled to the gills including the SAP consultants working under umbrellas. Then I saw the expansion wing shut down and boarded up. Then the emptying of many of the floors. There are now less than half the people in Islandia than CA at its peak.
Now daycare, the gym and the cafeteria are shutting down, and people wonder if Islandia will be impacted? The lease is up in a couple of years and no doubt there is an out clause that Broadcom can leverage. Perhaps they will keep a floor or two in the short term but it makes better financial sense to exit the building and get something cheaper and smaller in Melville or Hauppauge.
I'm just hoping Islandia will survive in either case. We have many good people here, and it would be heartbreaking if we were told it's over. Broadcom or not, I'm still crossing my fingers at least this location won't be terribly impacted.
Yeah the OP is misguided here. After the merger some people will still have jobs. If it is blocked CA is toast and the damage will be far worse. No one will have jobs because CA will die.
if deal is off with broadcom there wont be CA anymore , products and BU will be sold by pieces.. CA is dead anyways...
CA is dead now. I don't see customer confidence coming back regardless, AD's that are left will struggle to sell whatever BU's that are left after this bloodbath.
I concur with @VF7vtEd-gkq. Now that the sale of CA is public there is no way to put the genie back in the bottle. The loss of pipeline, revenue and customer confidence, and of course the departure of many of the “good” CA employees means CA is dead without the deal.
If it fails to go through CA could limp along for a while, but it would mean more cuts and then would get circled by PE vultures.
The company would be defunct if the deal broke down now. We would not be able to recover from this, and chances are they would file bankruptcy a d there would be no severance or anything else for that matter. So definitely not something I think most people would wish for.
No way bike boy cut and run. He first changed into his tightest fitting spandex and bikes off.
The ELT can’t even lead their way out of a brown paper bag. They left gdl to sort it out on yammer