What’s Facebook’s New Real Estate Investment Deal?

Facebook recently announced a sizable new investment in California real estate. What is it, is it a good move and what other opportunities are evolving for real estate investors?

Facebook’s New Real Estate Bet

Zuckerberg recently proclaimed he was ready to make some “big bets”. One of them appears to be a major expansion of the social networks offices in Menlo Park, CA. The massive complex is being designed by the legendary Frank Gehry and boasts an expansive hanger like 10 acre open working area heralded as the “largest open floor plan in the world”.

So beyond the cool design, is this really a smart move given the current stock situation and will the show end up killing productivity at the tech giant causing it to lose even more of its edge?

It is certainly a fantastic time to buy California real estate, especially with interest rates so low however many question whether this is the only smart thing about the plans. You’d think Facebook was still the last brand who needed to stoop to Hollywood antics in order to stay in the news. Building the tallest condo or office building or even selling the most expensive one is one thing but there are real business operations to be kept in mind here.

Many are concerned that the vastnesses of the open space could easily kill productivity and creativity and ultimately the stock, especially after plowing so much money into the new building and taking on more overhead. Yes, having mini kitchens throughout, treadmill desks, a roof top walking trail and encouraging more interaction between staff sounds good but it is going to take some amazing design skill to be able to keep real working going on. Before you think about opening a real estate office like this think about the noise, lack of focus, germs, privacy and stress. Tech firms like Facebook can’t afford high turnover or to slip for even a month.

Facebook’s Opportunities for Real Estate Professionals

Mobile aside and not mentioning the fact that Apple left out further integration on the new iPhone 5, Facebook also seems like it may be losing serious ground to Google as Google+ racks up 400 million plus serious business users and Facebook slashes user numbers due to fake accounts.

Zuckerberg did allude to the social network pursuing search marketing as a channel which could be interesting but will face serious competition. However, many will be surprised if the Zuck is still at the head of the table next year. Right now he’s a sitting duck, a scapegoat whose firing can save Facebook from bankruptcy when current plans don’t go right, but if there is one thing the he is slick about it is control.

Real Estate Education from Facebook

While this is a great time for buying California real estate you have to imagine flipping real estate like this has to be a little more challenging given the numbers and niche.

Maybe the original house is a hotter flipping item? What other soon to be billionaire entrepreneurs’ inspiring first digs are up for grabs and can be flipped for great profit with a good story?