Comment by blackeyeblitzar 10 months ago
Companies like Amazon literally own billions in office space. Making that space valuable again with RTO policies, especially if you create an RTO trend, a way of enabling them to sell at their previous values.
>apparently this looks better on the books!
Or, as we have seen hundreds of times, it's sold at market price to a "third party" company that is actually owned by one of the board members or executives, which then rent it back to the company for a slight premium.
We do see this occasionally. You'll have some private equity group buy a restaurant chain like Red Lobster. They make RL lease the real estate from them after having RL sell the real estate to them. Sometimes it's not restaurants, I think this is what murdered Toys'R'Us (correct me on that if I'm wrong).
But this isn't the norm, and it's not happening to well-managed businesses. It's something a vulture does after the company has been struggling for years. If that happened with a Microsoft or an Amazon, or any of the companies we work for. It's silly to suggest that is the cause of widespread RTO mandates.
Amazon used to lease several buildings from Paul Allen for years but ended up buying them outright, and then going on a construction binge beyond that.
Do they actually "own" it? I work for a large company who spent millions building a new office and then immediately sold it to a different company so they could lease it instead of owning it (apparently this looks better on the books!)