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I'm not sure if the landlords are as savvy as you think. If the startup runs out of money, landlords will be the last in line at bankruptcy proceedings. It's ha

I'm not sure if the landlords are as savvy as you think. If the startup runs out of money, landlords will be the last in line at bankruptcy proceedings. It's hard to claim losses for the next 6 years of lease income when they can turn around and rent the space to a new tenant.

7Figures2Commas 12y ago
Are you suggesting that commercial landlords don't understand the risk of bankruptcy? First, not every startup is going to die. Second, you don't necessarily need your tenants to survive to capitalize on these leases. For example, leases affect a property's value. If you're looking to sell a building, having tenants locked into long-term leases at record or near-record rates is not going to hurt you. The landlords have been through booms and busts before and know more about the commercial real estate market than the entrepreneurs they are leasing to. That they're increasingly looking to lock in longer leases is a good clue as to where they think we are in the current cycle.
Animats 12y ago
"I'm not sure if the landlords are as savvy as you think." Some of them are. Saeed Amidi, the rug dealer behind Medallion Rug Gallery in Palo Alto is famous for this. He demands some equity in startups leasing his properties. Google's first office was in his space. PayPal's first office was in his space above the bike shop. Facebook's first office too. Also Foursquare, Danger, and others not as successful. Amidi is now a venture capitalist, but he still has the rug stores. http://www.theguardian.com/technology/blog/2011/oct/14/welcome-to-silicon-valley-shuffle http://www.theguardian.com/technology/blog/2011/oct/14/welco...