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

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141–150 of 185 posts

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

#141
Pretty hard to feel sorry for these guys.

They found a cheat code in capitalism and they're exploiting it.

* Landlord: "I didn't have to increase the rent but I did it anyway. " : iamatotalpieceofshit || https://www.reddit.com/r/iamatotalpieceofshit/comments/14xop...

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

#142
post #21
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.

Plumbing and windows are too hard. So, let’s not do it.

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

#143
post #102
post #6

"Remote work risks wiping $800 billion" No guesses which angle this is coming from. "Attendance still is 30% lower than what it was before the pandemic and only 37% of people are back at the office every day." And yet the world has not stopped. In fact everything seems to be going faster than ever.

I don't even turn my video on these days during calls. Most of my team mates don't. Some of them don't know how I look and I don't know how some of them look. And yet, we work well as a team. We are all in different cities and countries and work remote. Unless our physical presence is necessary (hairstylist, nurse, chef...), we should aggressively push back on "come to office 300 days a year" requirement. Only dumb m…

>how many colleagues from your previous jobs do you really keep in touch?

i still hang out with people i met at my previous job over 5 years ago.

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

#144
post #57

Earlier quoted context omitted.

My former employer (in London) has just instructed everyone, finally after COVID, to be in the office for 50% of the time. Many of my former colleagues starting looking for other jobs last week. It seems employers have two concerns: cost and presenteeism. The first is easily solved, downsize your office. The second, is an organisational problem. Why commute for 90 minutes each way to sit in a office with headphones o…

> It seems employers have two concerns: cost and presenteeism. There's real value in people talking to their coworkers in person and knowing them. There's an obvious cost as well, but let's not pretend there's no value there.

> There's real value in people talking to their coworkers in person and knowing them.

I don't think this is true. A certain type of person who enjoys socializing at the office may like this, but a lot of people feel like they have a stronger voice when remote vs being talked over in real life. When you WFH you democratize communication (if you do it right), when you're with people IRL the most domineering people control the conversation and in my experience, productivity greatly suffers vs WFH.

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

#145
post #53

Earlier quoted context omitted.

Do you have any data to show how prevalent this is? I suspect worker retirement plans have more exposure than leaders of companies, and it seems only the largest, most stable and slower growing companies own their own real estate.

My former employer's CEO (a small business) owned the floor of the building we were in and leased it back to the company. I've known other smaller companies that owned their own building, but it would be interesting to see how prevalent it is. I suspect it's more common than we think.

In North America at least, having condo or strata units by floor of office buildings is relatively rare. I’m not saying it is ever a motivation but I just don’t think it is as big a motivation among tenants/employers as I see people on HN claim it is.

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

#146
post #108
post #99

Earlier quoted context omitted.

Is the value quantifiable?

Yes, I remember Google studying remote versus in office work well before the pandemic. This isn't the study but it talks on the issue: https://www.tandfonline.com/doi/abs/10.1080/07370024.2014.92...

[deleted]

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

#147

This is what happens when urban planning goes wrong. In asian cities where most office buildings are zoned along with residential buildings and other types of buildings (shops, service providers etc) the office commercial property would just get converted to another type of commercial and possibly residential property and life moves on. An extreme example of this would be to have residential building type be almost i…

it would be great if it were as simple as re zoning. unfortunately it's not so easy. https://www.nytimes.com/interactive/2023/03/11/upshot/office...

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

#148

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…

>perhaps 50% of office desks sit empty

Can you provide that source? I have a different source that shows my city is at 19% (which is still absurdly high)

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

#149

Earlier quoted context omitted.

Yeah, you can't be anything blue-collar remotely. As well as jobs like healthcare. Lots of jobs still require you to physically interact with people or things.

All of those jobs should pay MUCH more.

What does "should" mean?

If I say "you should really get that cut checked out, it looks infected", then I'm making a recommendation to you or giving you advice (solicited or not).

But here you seem to be giving advice to a class of jobs, which doesn't make a lot of sense. A class of jobs has no agency.

Are you advising plumbers (one example of a blue collar job) to charge more for their services? I'm sure the thought occurred to them and it doesn't work for one reason or another.

Are you advising customers of the plumber to pay more? Have you ever requested plumber services, and if so, did you pay the plumber "much more" (in other words, are you taking your own advice)?

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