Probably, but as they occupy less space in each building, the leaseholder may look to not renew leases to find a better return
Which brings us right back to the irreversible but lunatic decision taken many years ago by BT.
My wife spent all her working life in first the GPO, then BT when the split with the postal service took place. Two major changes happened to her work in the properties division in respect of exchange building.
First was the change from acquiring expansion space to cater for growth, preferably immediately adjacent to existing exchanges. That changed very rapidly once the new much smaller equipment became available, so she started selling instead. Nothing strange about that, but remarkable in the way a job and how all jobs in all businesses are about to.
But the point you just made about the leaseholder shows the daft change.
The principle when buying exchange buildings was that they had to be purchased freehold, not leasehold. (Ground rents being a different matter). There was a complete policy change at some point.
All retained buildings had to be sold and leased back.
Good for the balance sheet and shareholder dividends, long-term as stupid as building hospitals under Public Private Partnerships.
The chickens on both are currently coming home to roost. As they will during the life of Hinckley Point and
more so at the end of the fixed price period.
Sorry to bring non-exchange issues into the thread, it was to demonstrate how the
leaseholders leaseholding of exchanges came about and how stupid it is in the long term.
Edit: Typo "leaseholders" correction.
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Edited by RobertoS (Sat 20-May-17 15:53:13)