Comment on Why do people say that "return to office" is about raising commercial real estate prices?
fuckwit_mcbumcrumble@lemmy.world 1 year agoIf nobody is using any buildings then there’s an indefinety supply and no demand.
Comment on Why do people say that "return to office" is about raising commercial real estate prices?
fuckwit_mcbumcrumble@lemmy.world 1 year agoIf nobody is using any buildings then there’s an indefinety supply and no demand.
HandwovenConsensus@lemm.ee 1 year ago
Buying something to create artificial demand usually isn’t a good investment strategy. A “pump-and-dump” can work if you can set off a buying frenzy and sell before it wears off, but it’s not a long-term strategy.
Besides, if that was the plan, leaving the buildings vacant would be just as effective as using them.
chicken@lemmy.dbzer0.com 1 year ago
It’s CEOs doing this, they don’t necessarily have to make things work out long-term as long as it doesn’t look like they messed up.
Aceticon@lemmy.world 1 year ago
Some years ago the average tenure of a CEO was 18 months and it’s probably not changed that much since, so they really have no reason to worry about what’s going to happen in a 5+ year horizon: they will be long gone, bonus in the pocket and the stock options fully vested.
PaupersSerenade@sh.itjust.works 1 year ago
I’m speaking from experience in CA;
Quite a few of these markets were moved on pre pandemic. Now it’s a question of how to offload. My prior company had a very nice multi story building in SoCal before they tried calling back. That was before covid, even then they had trouble securing a purchaser or renter. The market has only gotten worse.
There’s some sunk-cost fallacy; where you’ve already paid for the space, if you make the whole team drive 1hr+ to meet it’ll have been worth it.
RightHandOfIkaros@lemmy.world 1 year ago
What about modern business makes you think they have a long term strategy? All of them have been making only short term gain decisions for a while now.
Who cares if the company could be successful in the future if I can make a lot now by sending it into bankruptcy today?