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Strong Assumptions include: 1. They think that in-person work still has value. 2. They want a physical presence in a world-class city. 3. They think the prop
by lbotos 5y ago
Strong Assumptions include:
1. They think that in-person work still has value.
2. They want a physical presence in a world-class city.
3. They think the property will appreciate in value to sell later
4. They intend to rent it out and generate income that way.
- nerdponx 5y agoIf they are buying real estate now, I suppose it means they are not expecting rents to fall soon. Right now, the city government seems very happy with the fucked up real estate market and the continued gutting of city centers, so maybe they are correct. Reversing this trend is one of the most important things New Yorkers can do to ensure the long-term health of their city. It's already been bled out pretty badly by the real estate investment vampires.
- rmah 5y agoFor a variety of real-estate industry/finance specific reasons, commercial rents in NYC are very "sticky". Many building owners would rather space sit empty for years rather than rent the space at lower rents (for various degrees of lower). In short, both the near-term and long-term future outlook would have to be quite bleak before we see a broad and substantial lowering of commercial rental rates in NYC.
- nerdponx 5y agoI guess that's kind of my point. Google clearly doesn't anticipate either a natural change in the economic situation or regulatory intervention. The latter is what I find disturbing, that they're so sure they're willing to bet $2bn on it.