A lot of companies with large campuses have gotten concessions from local government, since the workers will increase economic activity in the area. So part of it is also that city governments are putting pressure on companies to get people in, and they might lose millions in tax breaks they got for building in their city.
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Strangle@lemmy.world 10 months agoIt’s not just about liking the big buildings. It’s also very much tired to company evaluation numbers and stock price.
Real estate is a huge part of company asserts and they reflect in the stock price.
Why do you think these huge mega companies publicly traded have these trillion dollar campuses and stuff? Private companies would find that a little bit crazy, when they are more focused on having actual cash in the bank.
The real estate isn’t an ego thing, it’s protecting and growing the price of company stock
Semi-Hemi-Demigod@kbin.social 10 months ago
girltwink@lemmy.world 10 months ago
It’s about liking big buildings in this case.
Strangle@lemmy.world 10 months ago
That doesn’t make logical sense, though
jubilationtcornpone@sh.itjust.works 10 months ago
In my experience, big corporations frequently do things that don’t make any logical sense.
Strangle@lemmy.world 10 months ago
You just don’t understand them. They make perfect sense when you educate yourself
Fiivemacs@lemmy.ca 10 months ago
Don’t forget they also invest in companies that buy/own buildings too…it’ll hurt their bottom dollar across the board
Strangle@lemmy.world 10 months ago
I’m not convinced the bottom dollar is as relevant as the stock price.
These companies make baffling dollar decisions, like having these trillion dollar campuses, that would make no sense at all to the bottom dollar.
It would seem wasteful. But for the stock? Well that seems like a different story. What does having trillions in real estate holdings under a company name do to the stock?
Num10ck@lemmy.world 10 months ago
well it helps the book value as an asset but it hurts the available cash and the liquidity of assets and the return on assets although the depreciation is a big write off. its not a great use for most companies to sit on brick and mortar that aren’t generating revenue. but whats the point of having a high floor corner office if nobody is around to pretend to care?
chicken@lemmy.dbzer0.com 10 months ago
But, couldn’t the company sell their real estate and pay that out to shareholders while retaining the same profit potential?
Strangle@lemmy.world 10 months ago
They can also sell product to customers, but often over stock items for the same reasons.
Showing trillions of dollars in assets, with inflated inventory dollar values makes the company look more valuable, which impacts the stock price.
I’m sure there are a dozen ways to skin that cat, but this is how C-Suite execs seem to prefer to make their stock go up
TigrisMorte@kbin.social 10 months ago
The Real Estate is usually subleased from holding companies owned by Board members or their family.
Strangle@lemmy.world 10 months ago
This would still count as company assets, though?
Does apple lease their campus?