Boeing looks to offload 30% of its real estate

Tough quarter brings downsizing in space, layoffs

National Weekend Edition /
Nov.November 01, 2020 12:00 PM
Boeing headquarters in Chicago with Boeing CFO Greg Smith (Photos via Wikipedia Commons and Boeing)

Boeing headquarters in Chicago with Boeing CFO Greg Smith (Photos via Wikipedia Commons and Boeing)

Boeing may reduce its real estate footprint by as much as 30 percent because of the pandemic.

The Chicago-based company announced on Wednesday it is exploring its options for selling some of the real estate it owns around the country, the Puget Sound Business Journal reported.

“We’re reviewing every piece of real estate,” CFO Greg Smith said. “Every building, every lease, every warehouse, every site to see how we can be more efficient.”

Smith said the review aims to take advantage of “new and flexible remote work possibilities” that arose from the coronavirus pandemic, according to the Business Journal.

Job cuts will also allow the company to reduce space. The company plans to cut 30,000 jobs by the end of the year and announced 7,000 layoffs on Wednesday.

Boeing Commercial Airplanes’ 855,000-square-foot headquarters in Renton, Washington is among the properties that could end up on the market. It’s estimated to be worth more than $92 million.

The company listed some Southern California properties earlier this year.

The company posted a $754 million loss excluding special items in the third quarter as revenue fell 29 percent, according to CNN.

“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality,” CEO Dave Calhoun said on a thirdquarter earnings call. [Puget Sound Business Journal] — Dennis Lynch 


Related Articles

arrow_forward_ios
President Donald Trump and 1483 Shore Parkway in Brooklyn (Getty; Google Maps)

Lawsuit targets Trump for “fraudulent” rent overcharge scheme

Lawsuit targets Trump for “fraudulent” rent overcharge scheme
Blackstone's Jonathan Gray (Getty; iStock)

Blackstone acquires $358M warehouse portfolio

Blackstone acquires $358M warehouse portfolio
Simon and David Reuben with 20 East 76th Street (Getty; Google Maps)

Reuben Brothers pick up Surrey Hotel at a discount

Reuben Brothers pick up Surrey Hotel at a discount
Gov. Andrew Cuomo (Getty, iStock)

Cuomo to ease requirements for rent relief

Cuomo to ease requirements for rent relief
A federal judge has rejected a lawsuit from a group of New York landlords that sought to challenge pandemic protections for tenants. (iStock)

Landlords lose challenge against pandemic renter protections

Landlords lose challenge against pandemic renter protections
Multifamily sector beating the odds

Multifamily sector beating the odds

Multifamily sector beating the odds
The home improvement retailer will stay in it's Flatiron location (Google Maps)

Home Depot extends lease for Flatiron store

Home Depot extends lease for Flatiron store
Hewlett Packard Enterprise Co. CEO Antonio Neri (Unsplash; Hewlett Packard Enterprise)

Hewlett Packard Enterprise leaves Silicon Valley for Texas

Hewlett Packard Enterprise leaves Silicon Valley for Texas
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...