Re:The war on remote work has nothing to do with productivity
by euroderf on Monday September 23, 2024 @02:43AM
(#41623003)
Is there a metric like PPP for real estate ? It might be a reality check for wealth vis-à-vis other nations.
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Re:The war on remote work has nothing to do with productivity
by jaggederest on Monday September 23, 2024 @02:48AM
(#41623033)
I think cap rates are a decent proxy for that kind of thing, and they're not too bad recently in commercial office space, as far as I can tell. It seems that office buildings are selling at a discount to what they were a few years ago. But I suspect that many buildings have not yet changed hands, and thus have debt based on their old values.
I wonder how many underwater office buildings there are in the US right now, and who owns their commercial paper?
Edit: looks like about half of all office mortgages are underwater. Welp, there it is.
Re:The war on remote work has nothing to do with productivity
by HeatrayEnjoyer on Monday September 23, 2024 @03:34AM
(#41623363)
But the mortgage is fixed. Bringing people back in won't change the contract.
Re:The war on remote work has nothing to do with productivity
by jaggederest on Monday September 23, 2024 @03:38AM
(#41623385)
The value of the building is as a multiplier of the net operating income, that's what a cap rate is. If people come back in and companies expand and renew their leases, that increases the value of the building and reduces the capital needed to recapitalize the mortgage.
And, bringing people back in, especially in the context of e.g. Amazon with thousand of workers, also has lots of knock on effects on other businesses, and there are plenty of copycats who follow the big seven tech companies.
Re:The war on remote work has nothing to do with productivity
by HeatrayEnjoyer on Thursday September 26, 2024 @08:40AM
(#41657708)
What is the motivation for the companies? They're not saving any money moving workers back in. They can just let the lease run out and not renew.