Re:Dropbox Converts to Permanent WFH
by syspec on Thursday October 15, 2020 @04:04PM
(#24793160)
I know the Pinterest cancelled their lease, I forget how much but they had to pay 90M to do it, but they got out of it
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Re:Dropbox Converts to Permanent WFH
by schoolornot on Thursday October 15, 2020 @05:27PM
(#24794239)
I wonder why a landlord would even entertain such an offer. It's not uncommon for leases to be ~15 years. That is a hell of a risky move to think that you'll be ahead by offering a buyout with the hope of finding new tenants.
The early cancellation payout was probably part of the original lease agreement. Big commercial contracts are dense and cover a lot of contingencies.
You can usually find a public company's leases in SEC fillings. I couldn't find one for Pinterest, but I found Dropbox's 200+ page lease agreement here: https://www.sec.gov/Archives/edgar/data/0001467623/000119312...
(it's a 15 year lease, with the cost increasing from $45 million/year to $68 million/years over the 15 years. Hope there's some option to re-negotiate in there)
Re:Dropbox Converts to Permanent WFH
by notherthrowaway on Thursday October 15, 2020 @05:34PM
(#24794310)
You could use the $90 million to diversify your real estate assets or pay down your debt.
It's entirely possible it was in a contract.