HomeDiagramsDatabaseMapsForum
     

Go Back   SkyscraperPage Forum > Discussion Forums > City Discussions

Reply

 
Thread Tools Display Modes
     
     
  #241  
Old Posted Feb 28, 2019, 10:47 PM
mhays mhays is offline
Registered User
 
Join Date: Jul 2001
Posts: 17,124
Quote:
Originally Posted by Crawford View Post
I think we're missing something with Amazon. I have no idea what it is, but the public is missing some piece of the narrative.

They supposedly got cold feet about NYC because there was some opposition, but any idiot knows that getting anything done in NYC is controversial. They actually faced surprisingly limited resistance. You could hand out $1 million no strings attached to every household and 30% of the population would object.

Now they're cancelling towers in Seattle after Seattle rolled over and removed any potentially objectionable taxes. What's going on here?
Cancelling? No, they said they'd sublease the big tower that's currently rising in Seattle.

Meanwhile they're 2.3 million square feet a short walk away, including a building that started this fall.
__________________
"Alot" isn't a word.
Reply With Quote
     
     
  #242  
Old Posted Feb 28, 2019, 11:34 PM
edale edale is offline
Registered User
 
Join Date: Apr 2017
Posts: 223
From the article linked a few posts up:

"The e-commerce giant is cancelling a 722,000-square-foot lease for the entirety of Wright Runstad & Company’s 58-story Rainier Square tower, currently under construction, according to the Seattle Times. Last year Amazon threatened to pull the plug on the lease if the city passed a proposed business tax, which it ultimately did not."
Reply With Quote
     
     
  #243  
Old Posted Feb 28, 2019, 11:57 PM
DCReid DCReid is offline
Registered User
 
Join Date: Jun 2012
Posts: 138
Quote:
Originally Posted by edale View Post
From the article linked a few posts up:

"The e-commerce giant is cancelling a 722,000-square-foot lease for the entirety of Wright Runstad & Company’s 58-story Rainier Square tower, currently under construction, according to the Seattle Times. Last year Amazon threatened to pull the plug on the lease if the city passed a proposed business tax, which it ultimately did not."
No company grows rapidly forever. They may be taking a pause with leasing with a hope that a new area for rapid growth will be found in a few years.
Reply With Quote
     
     
  #244  
Old Posted Mar 1, 2019, 5:53 AM
mhays mhays is offline
Registered User
 
Join Date: Jul 2001
Posts: 17,124
Then the Times article is wrong. The local business press is reporting that Amazon will sublease the space. Here's the Seattle Daily Journal of Commerce with the correct story, which says: "In a statement, Amazon said it is always evaluating its space requirements and intends to sublease Rainier Square based on current plans." https://www.djc.com/news/re/12119516.html

FYI, a lease is a pretty solid thing unless you pay heavily for an escape clause.
__________________
"Alot" isn't a word.
Reply With Quote
     
     
  #245  
Old Posted Mar 1, 2019, 6:19 AM
suburbanite's Avatar
suburbanite suburbanite is online now
Registered User
 
Join Date: Apr 2011
Location: Toronto
Posts: 2,140
You can't just cancel an executed lease. It's a binding agreement.

If they're taking the space to the sublease market that's completely different. The financial impact to the Landlord is negligible, and the effect on the city shouldn't be too drastic unless they plan on completely eliminating the jobs intended for that tower.
__________________
Discontented suburbanite since 1994
Reply With Quote
     
     
  #246  
Old Posted Mar 2, 2019, 12:11 AM
Crawford Crawford is offline
Registered User
 
Join Date: Nov 2003
Location: Brooklyn, NYC/Polanco, DF
Posts: 17,462
Of course Amazon (or anyone) can cancel a lease. A lease can be cancelled at any time, for any reason, as long as both parties agree.

And lease agreements often have termination clauses, where the tenant pays some predetermined sum.
Reply With Quote
     
     
  #247  
Old Posted Mar 2, 2019, 12:21 AM
Pedestrian's Avatar
Pedestrian Pedestrian is offline
Registered User
 
Join Date: Dec 2016
Location: San Francisco
Posts: 9,254
Quote:
Amazon to Launch New Grocery-Store Business
By Esther Fung and Heather Haddon
Updated March 1, 2019 7:08 p.m. ET

Amazon.com Inc. is planning to open dozens of grocery stores in several major U.S. cities, according to people familiar with the matter, as the retail giant looks to broaden its reach in the food business and touch more aspects of consumers’ lives.

The company plans to open its first outlet, in Los Angeles, as early as the end of the year, one person said. Amazon has already signed leases for at least two other grocery locations with openings planned for early next year, this person said, without saying where those stores would be.

Additional talks are under way for Amazon grocery stores in San Francisco, Seattle, Chicago, Washington, D.C., and Philadelphia, the people familiar with the matter said.

The new stores would be distinct from the company’s upscale Whole Foods Market chain. It isn’t clear whether the new stores would carry the Amazon name . . . .

Amazon is also exploring purchasing regional grocery chains with about a dozen stores under operation, one person said, that could bolster the new chain . . . .

The new stores aren’t intended to compete directly with the more upscale Whole Foods stores and will offer a different variety of products, at a lower price point, these people said. Whole Foods doesn’t sell products with artificial flavors, colors, preservatives and sweeteners, among other quality standards . . . .

For its new stores, Amazon is targeting new developments and occupied stores with leases ending soon. It could, for instance, consider a portion of a vacated Kmart, a person familiar with the matter said. Stores in the new grocery brand could be in strip centers as well as open-air shopping centers, the people said, and will be about 35,000 square feet, smaller than the typical 60,000-square-foot supermarket.

Amazon doesn’t want restrictions on the type of goods it may sell at its stores and wants the ability to change the store and sell health and beauty products for instance, the people familiar said. Leases in shopping centers often include limitations so that businesses complement rather than cannibalize each other.

It is unclear whether these new stores will be cashierless, but they will be heavily tilted to customer service and pickup capabilities, according to the people. Amazon is also looking to have some control over the attached parking lot to speed shoppers’ ability to get groceries, the people said . . . .
https://www.wsj.com/articles/amazon-...d=hp_lead_pos1

One wonders why Amazon seems fixated on the low margin gorcery business rather than high margin businesses like Amazon Web Services. The difference is so vast, in fact, that it seems more and more likely they will eventually break up the company into a tech portion and a retail portion. It has even been speculated that's why the wanted a new "headquarters"--one for each portion.
Reply With Quote
     
     
  #248  
Old Posted Mar 2, 2019, 12:26 AM
suburbanite's Avatar
suburbanite suburbanite is online now
Registered User
 
Join Date: Apr 2011
Location: Toronto
Posts: 2,140
Both parties agreeing is the key point. If the Landlord was relying on Amazon's anchor tenancy to secure financing and begin construction no way in hell they're letting them walk away, hence the sublease.

A typical termination buyout would consist of the unamortized portion of the improvement allowance given to the tenant and some extra penalty like 3 months of rent. In the case of trying to terminate before the building is even finished, the cost to make the Landlord whole would be astronomical.
__________________
Discontented suburbanite since 1994
Reply With Quote
     
     
  #249  
Old Posted Mar 2, 2019, 3:10 AM
mhays mhays is offline
Registered User
 
Join Date: Jul 2001
Posts: 17,124
Quote:
Originally Posted by Crawford View Post
Of course Amazon (or anyone) can cancel a lease. A lease can be cancelled at any time, for any reason, as long as both parties agree.

And lease agreements often have termination clauses, where the tenant pays some predetermined sum.
Sure, it's just typically more expensive in net present value than fulfilling the original lease.
__________________
"Alot" isn't a word.
Reply With Quote
     
     
  #250  
Old Posted Mar 11, 2019, 4:56 PM
mrnyc mrnyc is offline
Registered User
 
Join Date: Jul 2006
Posts: 5,193
sooo it comes out -- how 'bout dat cleveland bid!

it seems nyc wasnt the only one throwing around mega huge incentives -- much bigger than we all even suspected i think -- $3.5B here --


Cleveland’s bid for Amazon offered prime downtown real estate and unprecedented city and county tax breaks

Updated Mar 10, 6:21 PM; Posted Mar 9, 2019

CLEVELAND, Ohio -- To entice the world’s largest online retailer to build its second headquarters here, the region’s leaders offered Amazon access to a patchwork of downtown and waterfront real estate that would have embedded the company throughout the core of the city and likely changed its look and feel.

The proposal, made public for the first time this week, also dangled unprecedented financial incentives worth up to $3.5 billion that included the City of Cleveland and Cuyahoga County giving Amazon much of the new income and property taxes generated by the project.


more:
https://www.cleveland.com/news/2019/...ax-breaks.html


Reply With Quote
     
     
  #251  
Old Posted Mar 11, 2019, 5:50 PM
the urban politician the urban politician is online now
The City
 
Join Date: Jul 2004
Location: Libertyville, IL
Posts: 16,234
I told Amazon I'd pay them $100 if they built a HQ in my basement

I've got a couch, weights and a bench, a fridge full of beer, and a TV
__________________
Government creates more problems than it solves.
Reply With Quote
     
     
  #252  
Old Posted Mar 12, 2019, 4:19 PM
Sun Belt Sun Belt is offline
E.l.i.t.e.
 
Join Date: Sep 2017
Location: The World's Piggy Bank
Posts: 3,061
Quote:
Originally Posted by the urban politician View Post
I told Amazon I'd pay them $100 if they built a HQ in my basement

I've got a couch, weights and a bench, a fridge full of beer, and a TV
$100 won't even get you a Prime membership these days!
Reply With Quote
     
     
End
 
 
Reply

Go Back   SkyscraperPage Forum > Discussion Forums > City Discussions
Forum Jump


Thread Tools
Display Modes

Forum Jump


All times are GMT. The time now is 2:04 AM.

     

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2019, vBulletin Solutions, Inc.