Quote:
Originally Posted by freerover
The problem is that office leases are pretty long. It'll take another 5 years of leases ending to see the real impact but I think it's more likely we'll see more companies downtown using less space as oppose to larger operations. The lucky thing for us is that we were massively underbuilt for office space. I think we would be on trouble if we weren't and we had seen the same office boom in the last 5 years but we were just so far behind cir. 2019.
We might also see some natural leveling where tenants slowly move to newer buildings and we see some of the 80s office buildings razed and changed use to hotel or residential.
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I also agree that this period will restructure office demand broadly -- there will def be fallout. But as I said it's not clear to me yet by how much, and how radically it actually departs from what existed before.
And IMO it's not just a capital investment problem (though for sure it's that); it's a direct challenge to corp culture-building, which is deadly serious for the Bigs. Culture is central to all human capital thinking -- it attracts new talent, helps retain existing talent, established internal rules and mores, is a sales and marketing piece, sometimes has philanthropy and community engagement woven in. But WFH completely upends culture -- potentially nullifies it. Relegates work to a third order of importance in our lives, and while all of us white collar folks are clamoring for it, and have wanted work to be of somewhat less importance . . . none of us are really thinking about what it means if everyone does what we individually want.
Anyhoo, culture is rooted in place, IMO, and that's why work needs a place, even if it's only a place you go to once or twice a week.
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