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Who is "they"? The companies bringing employees back to the office aren't typically the owners of these buildings not are they real estate investors.
by parineum 1y ago
Who is "they"?
The companies bringing employees back to the office aren't typically the owners of these buildings not are they real estate investors.
- conception 1y agoCompanies don’t lease month to month. Empty space is $$$$ out the door every month.
- parineum 1y agoThe parent comment is specifically about the motivation for back to office being real estate prices. Sunk cost fallacy may be a factor but it's not the same.
- drooby 1y agoNo, but many of them may have signed agreements that provided tax breaks for their office location. Local businesses want humans near them.. that was the agreement, and the government wants that generated tax revenue. Many of this big orgs are not "maintaining their side of the agreement" - hence pressure to return.. lest tax breaks get challenged.
- parineum 1y agoThose tax breaks offset the price of the office. The price off the office doesn't need a tax break if you don't have an office. Frankly, the idea that there is any logical financial motivation (aside from an idea of increased productivity) for return to office is far fetched.
- const_cast 1y agoIf they (the companies) aren't the ones who own the buildings then why are they doing this? Not rhetorical - from my perspective, it seems like RTO is plainly a money-waster. If you're hybrid or remote and it's working, why take the risk? And, why pour your pockets on things that don't make you money, like office space? Cubicles don't produce your product, people do. I mean, it just makes so little sense to me. I don't think that means it's a conspiracy. But, clearly, we are missing something that executives are factoring into this decision.