Redevelop the office space as residential space. Our cities are flush with office space but are squeezed for housing. Sounds like a win / win.
This is what will eventually happen.
Work from home and the office real estate apocalypse
71–80 of 269 posts
Re: Work from home and the office real estate apocalypse
#72Redevelop the office space as residential space. Our cities are flush with office space but are squeezed for housing. Sounds like a win / win.
Unfortunately given the way some recent dystopian trends have been going it would end up that you simply have office dorms and live in the same building as your coworkers.
Re: Work from home and the office real estate apocalypse
#73Earlier quoted context omitted.
Whether value was 'destroyed' or not depends on how you look at it. $500 billion dollars worth of assets were lost by the owners of the real estate; that value is gone, and it didn't go to someone else. It just vanished. The value didn't disappear because it transferred to someone else, it went away because the asset itself become less desirable and valuable to other people. You can imagine it being like if a farmer…
>You can imagine it being like if a farmer had a bunch of grain stored in a silo and it somehow went bad. It's fundamentally different, practically the opposite. Paper losses are like a farmer realizing that the grain in his silo is bad. Knowing this when you were oblivious before is a good thing, whereas the grain going bad is obviously not. Once you start regarding bad news as a loss, very bad stuff happens. In som…
I wasn’t making an argument about the overall benefit to society, which is why I said it depends on what you mean by value being destroyed. It might be a long term benefit for society, but that doesn’t mean value wasn’t destroyed.
Re: Work from home and the office real estate apocalypse
#74Earlier quoted context omitted.
Wait, what?
Ask yourself how much infrastructure exists only for the purpose of commuting. You'll be amazed by the statistics. There's also lots of interesting satellite data about how clean the air in cities world wide got when COVID lockdowns started. [1] We don't need roads in cities. And definitely not multi-lane roads. [1] https://maps.s5p-pal.com/
You got to elaborate on that if you want people to take you seriously.
Re: Work from home and the office real estate apocalypse
#75Earlier quoted context omitted.
So good riddance? Do you really think someone who was able to buy real estate in Manhattan needs a handout? Also the money didn’t disappear, it went to people smarter or luckier than them who used to own the place before. Money doesn’t disappear.
That's not how market devaluation works. The "money" (paper money value) definitely was disappeared. It doesn't flow to someone else. Markets don't work like that. If I buy something for $100, the market value increases to $150 and then drops to $50, I've still lost $100 from the peak on paper. It didn't go to someone else.
The value of the building going down on paper is only significant when you denominate it in some currency, like dollars, or hours of labor. When the value of a thing goes from $1000 to $100, the people who lose are the holders of that thing, the people who win are the people looking to buy that thing, they can now do so with 10 hours of their labor rather than 100.
Re: Work from home and the office real estate apocalypse
#76Earlier quoted context omitted.
Wait, what?
Ask yourself how much infrastructure exists only for the purpose of commuting. You'll be amazed by the statistics. There's also lots of interesting satellite data about how clean the air in cities world wide got when COVID lockdowns started. [1] We don't need roads in cities. And definitely not multi-lane roads. [1] https://maps.s5p-pal.com/
You’re so disconnected from reality. Ask yourself how many people are unable to work remotely. If you can’t think of enough examples to justify roads, go outside more.
Re: Work from home and the office real estate apocalypse
#77Earlier quoted context omitted.
Wait, what?
Ask yourself how much infrastructure exists only for the purpose of commuting. You'll be amazed by the statistics. There's also lots of interesting satellite data about how clean the air in cities world wide got when COVID lockdowns started. [1] We don't need roads in cities. And definitely not multi-lane roads. [1] https://maps.s5p-pal.com/
They are pretty rare in European cities (that I know of). They do exist, but in the largest cities, and are limited to the main arteries.
Re: Work from home and the office real estate apocalypse
#78Earlier quoted context omitted.
Whether value was 'destroyed' or not depends on how you look at it. $500 billion dollars worth of assets were lost by the owners of the real estate; that value is gone, and it didn't go to someone else. It just vanished. The value didn't disappear because it transferred to someone else, it went away because the asset itself become less desirable and valuable to other people. You can imagine it being like if a farmer…
So companies that save money by not renting as much real estate and companies that supply equipment for WFH did not appreciate in value?
Not at an equal value to what was lost. Money was spent to build all those buildings, and all the things inside them, and all he services that kept them running. That money isn’t just gone. Plus, all the companies that relied on servicing commercial real estate depreciate in value.
Re: Work from home and the office real estate apocalypse
#79I'd like to see a research of WFH impact to people's spendings. Many households have to pay extra for more space to have a home office while companies pay less :)
Re: Work from home and the office real estate apocalypse
#80Redevelop the office space as residential space. Our cities are flush with office space but are squeezed for housing. Sounds like a win / win.
Unfortunately given the way some recent dystopian trends have been going it would end up that you simply have office dorms and live in the same building as your coworkers.
No way, if anything there will be expensive apartment style 2br in the same building with the office, with very expensive price or rent rate that only c-levels can afford it.
Then there'll be housing complex or apartments for workers 1.5 hours away from it with inefficient public transportation.