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Salesforce spent billions on their building in SF. Their company value is partially based on the value of this building. If the building sits empty, the value
by jedberg 4y ago
Salesforce spent billions on their building in SF. Their company value is partially based on the value of this building. If the building sits empty, the value of the building, and therefore the company, will drop.
This is why they are doing this. To keep the value of their very expensive building up.
- BeetleB 4y ago> If the building sits empty, the value of the building, and therefore the company, will drop. No, this is not how commerical real estate is valued.
- jedberg 4y agoThere are many ways to value a commercial building, but the majority of those are based on rents/occupancy rates. Even the "comparable sales" method basically includes rents, because sales rates on commercial properties are very dependent on expected ROI.
- Kokichi 4y agoBut it's not their tower