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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

#31

Post by threetonesun »

otachack wrote: post #17

Costs 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 t…

Assuming the alternative involves driving the costs associated with being at home are still heavily in your and society's favor.

Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says

#32

Post by xg15 »

bravetraveler wrote: post #14

It only took about two decades, I remember first hearing about WFH around the turn of the century Good riddance IMO

Two decades and a pandemic and even then companies are fighting tooth and nail against keeping the (new) status quo.

So much for progress...

Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says

#33

Post by kadoban »

jayski wrote: post #21
Kapura wrote: post #8

The building i currently live in is a 20+ storey apartment block that was made out of a converted office building built in the 60s. Given the housing prices in [checks notes] cities, it feels like a wave of residentializing is on the horizon.

Not an expert but I've read it's not easy to add all the necessary plumbing to provide showers and toilets if you redistribute office space into apartments. A lot of times office buildings will have one large bathroom per floor.

Is it easier than earning nothing because nobody is going to use the building otherwise?

Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says

#34

Post by dsr_ »

londons_explore wrote: post #16

What 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 c…

Typical business leases were 5-10 years. If you weren't willing to commit to 5 years in 2018, nobody owning a building in a major CBD wanted to see you. You could get sublets from businesses that wanted to recoup costs while moving to a bigger space, or space at the fringes or outside of the CBD.

The leases are just starting to run out.

Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says

#36

Post by sottol »

otachack wrote: post #17

Costs 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 t…

Yes, but so do the costs of the commute. How much wear and tear is that 55min/41 mile commute on the worker's car - or more rarely how much does that train/bus ticket cost monthly?

Some of the cost is always borne by the workers. And most people don't realize just how expensive wear and tear on a car is (or just owning one to get to work independent of wear and tear).

Personally, I'd take the wear and tear on the house over time lost commuting.

Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says

#38

Post by colechristensen »

jayski wrote: post #21
Kapura wrote: post #8

The building i currently live in is a 20+ storey apartment block that was made out of a converted office building built in the 60s. Given the housing prices in [checks notes] cities, it feels like a wave of residentializing is on the horizon.

Not an expert but I've read it's not easy to add all the necessary plumbing to provide showers and toilets if you redistribute office space into apartments. A lot of times office buildings will have one large bathroom per floor.

It's not easy but it's also just like an ordinary phase of construction. They have to strip it down and replumb it, which in construction also just looks like drilling big holes through the floor.

What they're saying is the buildout from commercial to apartments involves more work than the buildout from one commercial client to another.

Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says

#39

Post by lacrimacida »

otachack wrote: post #17

Costs 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 t…

Id say that it’s insignificant. Moreover one can write off office equipment. The stress and wear on daily transportation to and from offices is far more significant at that: wasted time, energy, pollution.

Re: Remote Work to Wipe Out $800B from Office Values, McKinsey Says

#40

Post by arrrg »

otachack wrote: post #17

Costs 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 t…

Time and flexibility is worth much, much more to me.

I agree that employers should pay for adequate equipment (desk, chair, additional monitors, a great camera and headset, not just the laptop). A reasonable sum of money for mortage/rent and utilities should also be considered.

Though be careful what you wish for. One of the advantages of home office is that commuting time is not paid (with the somewhat reasonable justification that people can freely pick where they live and it’s not the employer’s job to subsidize those living far away). I think if those at home get something for the additional rent/mortage and utility use then those commuting should also get something for their commute time and lost flexibility. So in the end that comes to me out in a wash and I’m generally fine with no one getting anything.

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