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> We own all three buildings and land, and have always been proud of that for some reason Many businesses -- despite whatever their mission statement may be --

> We own all three buildings and land, and have always been proud of that for some reason Many businesses -- despite whatever their mission statement may be -- are not-so-thinly veiled real estate vehicles. Even businesses with a healthy income from whatever good or service they provide will often have another 25%+ in income from real estate gains. McDonald's is probably a good example of this. I learned this pitching a business plan where an executive thought the "occupant mission" was compelling, but that we needed more expertise on the types of properties we could add value to.

asdff 5y ago
It's hillarious when you get some bullheaded executive who comes into these companies specifically to part out this real estate and raise profits for their tenure before they exit. For example, a lot of studios in hollywood in recent years have sold their back lots, and are now just leasing them back from some holding company. I'm sure this arrangement made a lot of money for some people, but I imagine in a few decades this will hurt the studios when these land owners start negotiating the next round of leases and realize they have literally all the leverage.