With interest rates dropping real estate once more becomes lucrative. They are able to refinance their old loans and starting buying new places. Intel's satellite buildings are hot/old properties being given for pennies on the dollar. The real estate folks will grab it, refurbish and start all over again in 2025
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@1nmb sell to who? No one is looking to buy old corporate real estate right now. They’re all looking to offload
Real estate ghey
Folsom is a goner…
So folks, you got the message. Find out if your site or building is on lease back agreement, your days are numbered.
Spoiler... shrinking real estate holdings just means they'll sell the property, and sign a lease back for the exact same site. What this does is 1) provides a cash infusion by unlocking the value of non-revenue generating asset; 2) reduce expenses such as property taxes, local costs for street maintenance and fees; 3) provide more flexibility in future site relocations and/or shut downs; and 4) potentially frees up some cash flow in the near-term (via unlocking value, reduced expenses, future mortgage payments, etc). However, the downside is that on a long-term basis, it's more expensive since they will have perpetual payments until the site is closed.
so how many full remote workers are there going to be after the closure?
Intel had couple hundred leased properties a few years ago. Even if some have closed since then there are a lot to choose from.
Full sites that are <1000 people regardless of square footage (labs).
Full sites that are small already.