Are the offices and Labs all closing in Austin?
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The Austin leased buildings have had 3 owners since they opened in 2019. It's being flipped based on the value of the original 15 year lease. Knowing 3M, they signed when space was leasing at close to 2X what the current going rate is now, with a massive surplus of space available in the Austin market for any prospective sub-leasing tenant to chose from. The best they can hope for is to get a desperate tenant to move in and pay enough to offset property taxes.
As mentioned, the labs are only things keeping the facility open. The amenities in the business center--although excellent--don't justify the expense of operating a space with 10% occupancy. Medical looked at the place several times, but with SpinCo leasing space in Maplewood it seems unlikely they'd also need space in Austin unless they needed to relocate ops out of the old KCI mess in San Antonio. Why would they go through the expense & pain of moving hundreds of people 70 miles up I-35?
W> B_nson will fulfill her job as the hatchet now that H_mmes, the "passionate about fitness and always trust god's plan" tool has been sent packing. She's already cut 30% of the now-defuct CG&S group. The move to a global IFM seems destined to close down leased & owned facilities near & far. Cut experienced 3Mers--and their pensions + benefits--for an unqualified, outsourced provider that subs out all of the operations. Got a piece of lab equipment that's down? Too bad, because the experienced maintenance tech that knew it like the back of his hand was eliminated. Here, use this app to submit a request that will then cycle to 2 or 3 different subs who will all charge you while they go look at it only to tell you they can't fix it, but the 4th can. Slower, lower quality service for MORE money to your dept. That's winning. What business would look at that as a growth environment?
And don't worry about G_yle. She never even bothered to unpack the box she put in her office when she was told to move there last year. Hasn't been there more than twice.
Have a 12 year lease. Would have to write a giant check to move.
Oh no! What’s to happen with g-yle? How will she be esg advocate without the corner office?
So far only communication we got is that they will try to sub lease office space (right now there are two large buildings, office and labs). Long-term goal is to consolidate labs and offices in one. They cant close labs because EMD and EMSD will cease to exist.
Deeper scuttle bu-t in the 80’s after the Austin move was a Health Care sector complex in California and a Chemical-Films sector in Raleigh-Durham. California was crazy expensive so 275 complex happened once the Lew Lehr -Rudy Perpich feud cooled off. Raleigh Durham ended up likely someone’s pipe dream
There may be a few small things left there but what Lewis Lehr dreamed of (creating a 2nd HQ like structure in Austin in the 1980s because of a snit with Minn gov Rudy Perpich) has dissolved. I believe mcnerney started the De-austinization process.
I still think Monish is going to move HCBG company to Texas just to avoid paying 10 percent on his taxes plus a Minnesota millionaire tax.
3M puts 200K-plus square feet up for sublease in North Austin
https://www.bizjournals.com/austin/news/2023/05/09/3m-places-200k-square-feet-sublease.html