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Manhattan leases also famously start at 10 year terms as the shortest. With all the secrets going around your average FAANG office, no way would any company su

by shmatt 5y ago

Manhattan leases also famously start at 10 year terms as the shortest. With all the secrets going around your average FAANG office, no way would any company sublease a partial floor. Maybe an entire floor, but that creates more issues with the complicated separate lobby and elevator systems they previously built These companies could maybe cut the costs in a few years, maybe in 10-15. Most of these employees working from home probably won't work there by that time I really doubt we see headlines such as 'Google leaves 2 floors in Chelsea office' anytime soon, with or without workers in office. They'll just keep paying for empty office space. maybe convert empty cubicles into another smoothie or burrito bar

JoshTko 5y ago
Companies at Google's scale have a lot more ability to move headcount across geographies so they can work around lease constraints to maximize benefits.
JumpCrisscross 5y ago
> no way would any company sublease a partial floor Why not? Turn it into a co-working space. Lease it to a start-up and put up a divider.
- inetknght 5y ago
  If Google can't fill the offices because of work from home then what makes you think a start-up would be able to?
sjg007 5y ago
Google owns the buildings.. they bought them outright.
- CydeWeys 5y ago
  Though a lot of the space inside is still leased out to external tenants, so space used for Google employees does have the opportunity cost that you're not instead earning rent on it. Google doesn't really want to be a landlord though -- other than the retail first floor of Chelsea Market, I think the long-term goal is to get the rest of the tenants out. The landlording is already contracted out anyway.
Spooky23 5y ago
You can slow down acquisition. I hired about 60 people in the last year, and setup 0 workspaces in my full offices. Just started procurement activity targeting a buildout to be done Q2/Q3 2022.
vel0city 5y ago
Loads of companies routinely lease partial floors. Its really not that crazy of a concept.

by shmatt 5y ago

JoshTko 5y ago

Companies at Google's scale have a lot more ability to move headcount across geographies so they can work around lease constraints to maximize benefits.

JumpCrisscross 5y ago

> no way would any company sublease a partial floor Why not? Turn it into a co-working space. Lease it to a start-up and put up a divider.

inetknght 5y ago
If Google can't fill the offices because of work from home then what makes you think a start-up would be able to?

sjg007 5y ago

Google owns the buildings.. they bought them outright.

CydeWeys 5y ago
Though a lot of the space inside is still leased out to external tenants, so space used for Google employees does have the opportunity cost that you're not instead earning rent on it. Google doesn't really want to be a landlord though -- other than the retail first floor of Chelsea Market, I think the long-term goal is to get the rest of the tenants out. The landlording is already contracted out anyway.

Spooky23 5y ago

You can slow down acquisition. I hired about 60 people in the last year, and setup 0 workspaces in my full offices. Just started procurement activity targeting a buildout to be done Q2/Q3 2022.

vel0city 5y ago

Loads of companies routinely lease partial floors. Its really not that crazy of a concept.