> If both of these stories are true, it makes me wonder why they're acquiring so much real estate. Most likely a low-cost option to expand at their leisure. 1

> If both of these stories are true, it makes me wonder why they're acquiring so much real estate. Most likely a low-cost option to expand at their leisure. 1. In general land will be cheaper now than in 50 years. Even if current prices are high, the fluctuations will look like a blip in a few decades. 2. They can lease the land to minimize holding costs (taxes, etc.). 3. They block out competitors from deals. 4. They can expand their capacity as needed when needed. I know several wealthy universities I have been affiliated with have done this. Whenever real estate near the university was for sale, they were the buyer. Price really didn’t matter (a “high” price was fine). They left the buildings as they were and used them for the same uses. Then when they wanted to expand for a new facility or whatever, they just wrapped up all the leases, knocked the old stuff down, and built the new thing. People wonder why they paid so much for the land, but it always looked like a genius move over time. Similar concept in my opinion.