How many of those in SF, London, and NY were due to other issues such as company moving out of the city rather than WFH.
Remote Work to Wipe Out $800B from Office Values, McKinsey Says
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Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says
#12Good. Remote work leads to better distribution of wealth (w. r. t. geography). That's almost always a good thing.
Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says
#13I refuse to be miserable in an office just for someone else's building value.
No one is asking you to come into an office just to boost their landlord's property values. That would be a money losing proposition for the company.
This is a public discussion forum, not your living room.
Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says
#14It only took about two decades, I remember first hearing about WFH around the turn of the century
Good riddance IMO
Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says
#15Since the value was never created by the real estate investors themselves, honestly, who cares. Housing as a speculative asset is bad enough, let alone rewarding somebody trying to get rich off being a cubicle landlord.
Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says
#16What amazes me is that we didn't see a faster cratering in value in office space.
On any given day in any capital city, perhaps 50% of office desks sit empty.
Yet I can't buy an office building for cents on the dollar.
Normally when supply far exceeds demand like this, companies owning those assets can't pay their bills, the building is sold, there are no buyers, auction prices crash, the crashing prices cause more companies to go underwater, those buildings are sold too, and there is a big wipeout of all leveraged property owners. Rent and purchase prices prices for office buildings fall 70%, encouraging other uses of the buildings (retail, residential, industrial), and they end up full again.
But for some reason that isn't happening. 3 years later, and still more office desks are empty than full in most capital cities.
Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says
#17Costs will be appended to the workers. I hope we all realize someday how working from home applies further wear & tear to our amenities and homes compared to the office's. Think toilets, sinks, fridges, chairs, doors, floors, etc.
I fully advocate for WFH regardless and to even supplement with an option like DeskPass for those that want to take a break from home. But a portion of those former office costs should go to the workers.
Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says
#18Aren’t we for reducing inequality and spreading the wealth?
The concentration of these massive amounts of wealth in Silicon Valley and NYC is the driver of a whole lot of pathologies from the high cost of housing to homelessness to gentrification of historical neighborhoods to the hollowing out of large portions of the United States.
Remote work has a chance to spread some of the wealth throughout the country and across different neighborhoods.
This wiping out of $800B from already wealth-concentrated areas is a good thing.
Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says
#19Earlier quoted context omitted.
No one is asking you to come into an office just to boost their landlord's property values. That would be a money losing proposition for the company.
Indeed they're not asking ...
If a company wants someone to come back to the office, it isn't for their landlord's property value.
If they have lots of free space they can sublease it out, it doesn't make any sense to force people in to an office just to burn money and miss out on revenue.
Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says
#20Everyone keeps calling them offices, but I used to work in them and they felt a lot more like code factories to me. Good riddance.