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Since the beginning of 2020 Big Tech has purchased 1.6 million square feet of office space in NYC alone. It’s a move to control their operations, park hoards of cash into hard assets, and continue to expand their operations with hundreds of thousands of new hires. In fact Amazon hired over 400,000 employees in just 10 months following the start of the pandemic. With a massive increase in headcount comes a need for infrastructure and space to work in.
As if the timing couldn’t have been better, demand dropped while supply shot up in commercial real estate, causing building prices to fall. This opportunity allowed the Big Tech companies to pick up hoards of buildings at a great deal further expanding their portfolio and balance sheet assets. 600 million square feet is the space that Big Tech companies own and operate in the US. To put that into perspective the US has about 4 Billion square feet of office space total in the US.
In this episode of Things Have Changed we cover the Commercial Real Estate market, how Big Tech is positioning themselves with recent acquisitions, and why vacancy levels have inverted from suburban regions to downtown areas.
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