Comment on Why do people say that "return to office" is about raising commercial real estate prices?
scarabic@lemmy.world 1 year ago
I think you’re getting a lot of bullshit answers here and your first instinct was correct. This is a nonsense fable that someone came up with when they were high and then told to some friends, who believed it because they don’t know shit.
You mean to tell us that the same CEOs’ reports that mentions productivity has gone up after going remote was a lie? Record breaking profits after going remote is a lie?
Why are the CEOs lying? One of the explanations is that the profit margin is 15% and the city is theatening to end the 15% tax break.
You mean to tell us that the same CEOs’ reports that mention productivity has gone up after going remote was a lie? Record breaking profits after going remote is a lie?
Why the fuck would you think that’s what he’s trying to say?
What is he trying to say then? What the commentator mentioned and what the CEOs(including my own employer) were saying from 2020-2022 are at odds with each other. So someone is incorrect. Which one is it?
He said nothing whatsoever about the positive indicators of wfh. He just said the idea that CEOs care about real estate values is bullshit.
themeatbridge@lemmy.world 1 year ago
It’s not exactly nonsense. Commercial real estate is leveraged by corporate investors are reliable equity. There are a lot of cards balancing on top of commercial real estate investments, and a crash would cause a domino effect similar to 2008, although probably not nearly as bad.
Banks desperately want commercial spaces to maintain some value, and there are a lot of long-term leases expiring over the next few years. Businesses that stay remote may be owned by stakeholders who also invest in commercial real estate.
So it’s possible somebody somewhere is motivated to get people back into the office because they are worried about the economic fallout of another crash. Those people are far outnumbered by the Six Sigma Laser Lotus Middle Managers who have metrics showing people don’t take naps or jerk off as much in the office as they do working from home (if you’re wondering how they get those KPIs, ask yourself if you have a cover for the cam on your company-issued laptop).
TLDR The push to return to office is almost entirely about control and conformity. It’s likely some decision makers are also worried about real estate values, but there is no grand conspiracy.
scarabic@lemmy.world 1 year ago
Yes if we’re verrry clever we can think of some plausible link but even then it’s very loosely gossey and purely theoretical. Just because we can draw a dotted line, however thin, doesn’t mean it’s actually real. Jar Jar Binks is a Sith Lord, etc.
As you say, this is something less than a tertiary factor, perhaps a thought that has crossed a few peoples’ minds. But if it’s even given any weight at all, it is outweighed by other considerations, vastly so, every time.
themeatbridge@lemmy.world 1 year ago
I agree with you for the most part, but the link isn’t that theoretical. Banks are pushing return to work harder than anyone.
That doesn’t mean they are all purely or even primarily motivated by commercial real estate values, but it’s also naive to think it’s a coincidence.
scarabic@lemmy.world 1 year ago
That article doesn’t say anything relevant here, though. So banks are stodgy institutions and they don’t like work from home. Unsurprising. The article says nothing about real estate valuations being influenced by RTO, and nothing about banks and their real estate investments influencing any other companies. 🤷♂️