That’s so, so stupid… They really are the dumbest of morons. They lost money, so they waste even more money and make their best workers flee.
This article misses the real point… they want voluntary turnover, when you layoff there’s severance and unemployment costs…
I thought it was because they couldn’t make friends & wanted to force people to be around them.
Unless they signed long leases with “commercial real estate” the company can just you know save a load of money not renting those spaces and just liquidate the office for quick cash.
Or if they own, they can always sell unless “it’s an investment” so we can sell it in the future for more.
A company I worked for got into a long lease for 3 floors in an office building. Never used one of them. Ended up subletting it to another company until they were out of that lease.
But you can only sell if someone is buying, and the moment you list that huge skyscraper on the market and find out that the only offers you’re getting are 1/10 the asking price, suddenly the other massive commercial buildings you have on your balance sheets (and those of all your rich buddies) suddenly drop 90% in value, and it’s revealed the emperor has no clothes
It would take some renovation but I imagine buying even just a couple of floors of space for apartments in the middle of NYC could be extremely desirable.
Sell the desks, save money on the office, utilities, and office supplies?
That would require an admission of fault for the last year of these attacks on WFH. No no we don’t do that here
Or, even WORSE: Give up their hatred of poor people in order to save money.
Early in the pandemic, our CEO asked why we paid so much for real estate if everyone could work from home. They’ve been trimming leases as quickly as they can.
We’ve been hiring people who live out of state. They only come onsite very rarely, maybe only once a year.
My company did that too, then they replaced us with cheaper labor from overseas.
Ours did that before the pandemic and not my area. Within a year, it went back to what it was because of how terrible the quality was. Now they are dumping all the buildings that aren’t needed and sent a lot of us home. Of course, the main product that my job deals with needs buildings for machines to work so they didn’t get rid of everything. No more corporate, and for now, we are all home for the foreseeable future. I also wonder when they will get the bright idea to start outsourcing again now that it’s been like 7 years…
I think some of them are also doing it for the tax breaks they get if they pump a bunch of employees into the local area’s economy.
And we all know how difficult is is to get companies to voluntarily give up free tax money from the government. It’s like trying to take drugs away from an addict.
Corporate “Welfare Queens”
If you want to open your eyes even more, check out the neat overlap between commercial real estate and large businesses that require an office. Often, it’s one and the same, so it’s easy to see why they wouldn’t want their buildings nearly empty.
So the only people going to the Dunkin’s in the office building are office workers. If we don’t go back, that Dunkin’s could go out of business. Is that something we can really allow on our collective conscience?
Won’t someone think of the
childrenshareholders???
Bunch of real Einstein’s running these places, huh? Fucking morons, just don’t waste the money leasing large offices.
It’s all about status. Big building = big dick. And more buildings spread all over the place is the equivalent to them having tons of kids.
It’s such a primitive, ape-brain thing to do, but that’s how these psychopaths operate.
Seriously. Every job I had, the C-level were all about flexing the size of the company.
One Fintech company I worked at got a giant skyscraper in front of city hall as a Fuck You to the mayor because they had beef with them a few years back. Another tech company constantly bragged about how much square footage of campus they had, constantly comparing themselves to empires.
All just dick measuring.
In my experience CXX folks were all about being seen and having something tangible to show off to potential partners and customers. It’s one thing to give people a tour of your facility. It’s another to meet up at a co-working space and settle in for a PowerPoint presentation full of abstract numbers and graphs about your "virtual "company. I’m not saying that’s right, and I’m certainly not arguing for RTO, but it helps explain that motivation and total lack of confidence in WFH.
It’s still a “primitive ape-brain” thing to do though.
constantly comparing themselves to empires.
Good thing empires never fall, right?
How was this not obvious when the panic set in with the pandemic.
It’s never about productivity, it’s always about increasing value.
We had some slight pushing into going into the office more, but instead of firing people, it was decided to switch to a smaller office space, so the people who like to work in an office can do so, and less money is wasted on a mostly empty office
Understandable that this is not an option for all companies, but insane that people are happier losing talent than at least trying to work something out
When the CEO personally owns the building and leases the office space to the company, that’s not an option.
then it’s not wasted money is it
Then he should act like any other office building owner and rent some space to other companies.
Bonus points if he gets with the future and works to convert some of the building to living space so people don’t have to travel to get to work. Not everybody will want that, but it will appeal to enough to make it worth doing. Shopping malls across the country are being converted to such hybrid spaces so most everything one needs is within a convenient distance.
Then he should act like any other office building owner and rent some space to other companies.
There are more buildings/office spaces to rent than people wanting office space these days. There are LOTS of empty unrented buildings. He would have difficulty even finding a tenant.
Bonus points if he gets with the future and works to convert some of the building to living space so people don’t have to travel to get to work.
An exceptionally small number (we’re talking single digits in the world) of Class A office buildings are good candidates for this, and these are typically done with grants/subsidies from state or local governments. These are only in the most lucrative geographic locations where housing is at an absolute premium regardless of the cost.
For good value of converting office space look at Class C buildings. These are typically older and smaller office buildings (think built in 1910s-1950s). In these, there are ways to make cost effective residential conversions and these are happening by the dozen now.
The class B pic shown in your link would be a perfect candidate to retrofit to housing if it’s unrented. The classifications you’re showing are classes of rentals, not building construction.
The class B pic shown in your link would be a perfect candidate to retrofit to housing if it’s unrented.
According to the architectural studies I’ve read when I looked into this question for myself, you would be incorrect. Open floor plans are apparently pretty horrible for residential conversions. Many residential building codes require each bedroom to have a window with a screen for ventilation. Now look at that picture of the Class B. The only exposed areas that could have a window with a screen would be on the perimeter. Further, codes many have rules that say that you cannot have one bedroom accessible by passing through another, so that would exclude long skinny apartments unless the are a 1 BR. That would leave lots of square footage trapped in the middle unusable for bedrooms. Could you put windowless living rooms and kitchens there? Sure, but even then its very few residences when they could knock that building down and get many more windowed rooms on the same piece of land.
Class C’s don’t have these issues as they were built with small individual offices in mind and not open floorplans, which make for affordable cost effective conversion to residences.
The classifications you’re showing are classes of rentals, not building construction.
I’m no building expert, but I am not aware of a difference in “class of rental” vs “building construction” you’re making the distinction of. The studies I read only referred to them by class letter and never mentioned any distinction that you’re referring to.
Here is a better example of the different classes in architecture: https://www.landzero.com/post/understanding-property-zoning-a-comprehensive-guide
As far as the windows, I don’t know that site and the window requirements, but it’s hard to see what’s going on on the sides. The overhead trusses are easily accessible as well. Maybe, maybe not.
I disagree with you on what you think you can do with “Class B” , but I don’t think you’re wrong about anything, if that makes sense.
Here is a better example of the different classes in architecture: https://www.landzero.com/post/understanding-property-zoning-a-comprehensive-guide
That looks like a guide on zoning, not on the layout inside office buildings or the age in which they were constructed.
As far as the windows, I don’t know that site and the window requirements, but it’s hard to see what’s going on on the sides. The overhead trusses are easily accessible as well. Maybe, maybe not.
I’m confused. You said this in the prior post:
The class B pic shown in your link would be a perfect candidate to retrofit to housing if it’s unrented.
If you say “its hard to see whats going on” or “maybe, maybe not”, why did you say that picture was the perfect candidate?
Don’t just take my word for it. Go look up the studies actually performed on Office-to-Residential conversion. There was one that evaluated something like 1250 office buildings in North America. Look up your local building codes for residential apartments. Some Class B are good candidates yes, but I doubt the one pictured is for some of the reasons I cited and more.
I disagree with you on what you think you can do with “Class B” , but I don’t think you’re wrong about anything, if that makes sense.
No, that doesn’t make sense to me. I’m no expert in this field. I just read the studies commissioned by the Federal government or articles about those studies. I even replied on Lemmy with this info a few months ago citing those sources. You’re welcome to take a look at it for more info here.
Bold of you to assume he already doesn’t. But WFH across many industries drives down urban office space value overall.
Won’t someone please think of the poor rent-seekers!
I edited the comment to expand more clearly upon what I mean. There are other ways to capitalize on the space.
Converting office space to residential is costly (if even possible for a given building), and would require a lot of effort. There may be zoning issues in the way as well.
Much easier to just use the CEO hat to keep desks full, and the landlord hat to collect rent.
Which is why I gave it “bonus points” for attempting to do so.
The other companies that are also doing WFH?
I edited the comment to expand more clearly upon what I mean. There are other ways to capitalize on the space.
i think you fundamentally misunderstand the motivations involved that would lead to the CEO owning the office real estate. commercial real estate is a means for them to siphon profits from the business, not a genuine attempt to provide a valuable service to anyone.
Ours tried full RTO, and then they compromised with hybrid WFH when they lost many skilled people who had been there for 10+ years to remote positions at other companies. Sometimes with little to no warning.
Some execs gotta learn the hard way.
I work in commercial real estate. Two years before the start of the pandemic, my company considered downsizing our office to have most employees work from home and just come in when needed. We also discussed how we expected the office building market to struggle in the future. (Thinking in 10 years, not two).
Anyways, we got a deal from the property owners to sign another lease, so we stayed put. And now, big surprise, they forced RTO. Someone asked our president about it in a quarterly call. He basically said “we’re never ever going back to WFH and you can quit if you don’t like it”.
So, naturally, we’re struggling with turn over and our headcount is down about around 10% so far.
For many of us, our teams are split up amongst multiple offices so there is no difference from working in the office and working from home. It’s all about that empty lease.
Yeah, too bad that a condo refit of a building is super expensive and needs some deep pockets to actually do it. Still worth the consideration if the building is a good candidate.
Also! I should add that for many property owners in commercial real estate, they can be “punished” for tenants that go dark, or stop operating at the location, even if they are still paying rent.
For example, say you own a strip mall with a grocery store and a few restaurants. If the grocery store stops operating in that location, there are less customers at the restaurants, making it more likely that they will stop paying rent also.
Empty desks is an opportunity to expand, including shared desks from work sharing or WFH some of the week.
Commercial real estate/rental spaces are also an opportunity to downsize and get out of leases at better per square foot rates. If not getting out of lease, then opportunity to sublet desk areas.
You would think that of all people, rich CEOs would understand the concept of the sunk cost fallacy.
The money on desks, rent, insurance, etc. is already spent. You’re not getting it back. Asking people to come back to the office “so that it doesn’t go to waste” assumes that you aren’t taking on additional costs for people coming to the office.
You now have worn carpet, doors, pens, paper, etc…money you could have saved if you weren’t such a knob.
Are you really suggesting that you expect CEOs to be competent? Scamming people and exploiting workers doesn’t require skills, except if immorality is one.
Immorality is sadly a skill, ignoring that voice in your head that says “This doesn’t feel right, we can’t go othrough with this” and the one that says “Look what we’re doing to them!?! We have to make this right!”
Is very hard to do for people like you and I.
You would think that of all people, rich CEOs would understand the concept of the sunk cost fallacy.
I’d expect that of someone who has to make hard decisions and work hard to get where they are.
A Nepo-Baby is neither of these things.
The great reset is coming, it’s nipping at their heals, soaking into the top of their eyelids like exhaustion, the darkness is creeping in from all the edges, making them wonder how close it will get, if it will truly envelope them as they’ve been warned
Ah, RTO = return to office. That took me a while …
