4 ms·
Executives at companies do not give a fuck about the landlords of their buildings. It's an annoying expense that they complain about. you spend $2B on a brand
by tessierashpool 3y ago
Executives at companies do not give a fuck about the landlords of their buildings. It's an annoying expense that they complain about.
you spend $2B on a brand new office campus. you work directly with the architects and talk about how this new campus will create a great place for your employees to work. and then you have the humility and wisdom to throw all that away? even though everybody at the company knows that this is the big project you spent billions of dollars on?
the money that companies spend on their offices is a commitment that an executive makes. keeping their commitments and persuading other people to buy in to those commitments is one of the biggest parts of the job if you're an executive.
another very big piece is making sure that the assets on your balance sheet don't turn into liabilities.
This take is so common and so bizarre to me.
so take the time to think it through and understand it. commercial leases are 10-year leases. when an executive makes a 10-year commitment, they have spent energy to convince others to make the same commitment, and they are committed to spending more energy on it as well.
- ghaff 3y agoThat is not your typical company though. The typical company is leasing pretty cookie cutter office space in an office park or downtown. And many of those companies are not renewing many of their leases as they come up.