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It's sunk cost fallacy -- especially at the FAANGs. These companies spent billions on monuments to the company's greatness. These buildings, MPK 20 & 22, The Do
by jonathankoren 3y ago
It's sunk cost fallacy -- especially at the FAANGs. These companies spent billions on monuments to the company's greatness. These buildings, MPK 20 & 22, The Donut, Amazon HQ2, the Circus Tents, aren't just unsellable from the psychological sense, they're unsellable in a practical sense. The number of companies that need/want 2.8 million ft2 (262,000 m2) of nigh-undivided office space can be counted on one hand -- and all of these already have their own white elephant.
Mix in monkey-see-monkey-do management of smaller firms, and of course straight up class antagonism towards workers, and you've got RTO über alles.
- rocgf 3y agoTotally agree with this, I’m just saying that few, if any, companies would make the decision to force people back in the office based on the well-being of cities or the real estate market. All companies act in their best interest and that’s kind of it.
- jonathankoren 3y agoBut this isn’t acting in their best interest. It’s acting on the personal feeling of inadequacy of the execs. That’s it.
- aleph_minus_one 3y ago> The number of companies that need/want 2.8 million ft2 (262,000 m2) of nigh-undivided office space can be counted on one hand -- and all of these already have their own white elephant. I partially disagree: if necessary, rent out various parts of this office space to multiple companies.
- jonathankoren 3y agoThese buildings aren’t designed for subdivision, and attempting to subdivide them, probably would cost 100s of millions. For instance, MPK 2x are essentially airplane hangers.