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It's sunk cost. They have CRE leases they can't back out of and want to leverage their expensive real estate. In the future as the leases expire we may see shr
by freitzkriesler2 3y ago
It's sunk cost. They have CRE leases they can't back out of and want to leverage their expensive real estate.
In the future as the leases expire we may see shrinking and a slow return to more remote work as companies reduce the square footage of the leases.
Smart managers know that eliminating rent from balance sheets improves the bottom line.
- shrimpx 3y agoHow do you “leverage” the real estate if WFH is free in terms of office costs, and assuming there’s no loss of productivity with WFH?
- freitzkriesler2 3y agoSome companies are weird about using a co-working address and want a really small office footprint. Enough for a meeting room, a few offices, and a mailbox so when some banker or other business shows up you can put on a dog and pony show in a formal office with your name on the wall. That's about it.
- longbrass 3y agoMany creative companies don’t own real estate and are looking foward to sunsetting their existing leases to go with something much smaller and easier to manage. In addition to the rental square footage NNN leases and increasing energy and insurance will dove that the RTW push is short-lived as it financially makes little sense.