The awesome Taylor Lorenz reports this on Mastadon. Highly recommend to follow her if you like these updates about what’s going on.
The awesome Taylor Lorenz reports this on Mastadon. Highly recommend to follow her if you like these updates about what’s going on.
Ah that explains. Didn’t know he was renting the building.
Companies like this very rarely own property. They rent space from the property management companies that bought the land and constructed the buildings.
In general it’s a safe bet that if it’s an office building it’s rented space.
Yup. If you own a building, you need to pay someone to maintain it. If you rent a building, you get all of that in the contract and it’s one less thing to manage.
Also, you can relatively change buildings if you need more space, whereas if you own it, you need to sell it first.
Well, he wasn’t renting the building earlier.
Forgot about that shit. The guy’s such a scumbag. Hasn’t paid rent since he moved in and then tried to renovate? He seriously needs to be knocked down a few billion pegs.
Most of those IT platform companies only rent their premises as it helps improve the balance sheet and quarterly results by moving “capital expenses” into “operational costs”
I believe part of it is that managing huge buildings is actually a pain in the ass and requires specialized experience to do efficiently, so many companies end up saving money by not owning their buildings.
Well that, and the fact it costs huge amounts of money to own land in cities.
Does it not cost even more to rent?
I have no idea. But good luck finding unclaimed land with or without a giant office building on it in the middle of a major city. Adding the cost of land and construction and all the taxes that come with it plus the time needed to build everything?