3 ms·
If you are wondering why you are returning to office (RTO) despite 3-4 years of profitable quarters… It’s not because of “cUlTuRe”, “wOrK pRoDuCtIvItY”, “coMmUn
by xyst 3y ago
If you are wondering why you are returning to office (RTO) despite 3-4 years of profitable quarters… It’s not because of “cUlTuRe”, “wOrK pRoDuCtIvItY”, “coMmUnIcaTiOn gApS”, or “iNcReAsInG cOlLabOraTiOn”
It’s because the bag holders of these assets (ie, REITs, ibanks, hedge funds, foreign ibanks and investors) are at risk. Ultimately, the US government and to a certain degree state and local governments have guaranteed a large portion of these assets.
These investors need to pump their numbers (ie, occupancy rates, leases, …) in order to keep the con going. Often the building managers will dangle “free” upgrades in the faces of these corporate real estate managers to keep the leases active in exchange for guaranteed occupancy rates.
I hate this country sometimes. Shit like this is why we will never have a sustainable economy
- FredPret 3y agoWhy would a company RTO to keep the building's investors happy? They probably have different owners whose interests are at odds. The real estate guys want the building full to maximize rent income, but the company owners want to minimize rent expense. They are min-maxing against one another. Companies RTO because: a) they are run by people who don't get remote work b) they do something that involves being physically present c) layoff-by-RTO d) it's possible the government incentivizes RTO, but this is a short-term trick at best. RTO is unpopular with workers and most capital are invested in companies, not office buildings. All of those companies have a natural interest in minimizing rent.