3 ms·
Many traditional companies are bound to the office for a simple reason: they have offices as a financial investment. This is true even for super rich tech compa
by coliveira 5y ago
Many traditional companies are bound to the office for a simple reason: they have offices as a financial investment. This is true even for super rich tech companies, who went into a big real estate buying spree during the last few years. If they don't have use for these offices, the value of such real estate will go down precipitously. They are forced to keep the office style, at least for a majority of their employees.
- pertymcpert 5y agoBut why? Isn't that a sunk cost fallacy? In fact, running those offices is going to cost more in operations and maintenance that having them under-utilized? Presumably they bought empty commercial real estate. If it remains empty they'll get back most of that investment when they sell.
- faeyanpiraat 5y agoOP probably meant it in an industry wide phenomenon. If one corp transitions to full WFH, their office just keeps their value. If all corps go WFH, nobody would want offices like that, and all offices would plummet in value.