Comment on Why do people say that "return to office" is about raising commercial real estate prices?

FireTower@lemmy.world ⁨1⁩ ⁨year⁩ ago

Imagine you’re a CEO had signed a 10 year lease on an office building in 2019. You’re likely stuck paying for that building regardless of it you use it or not. If you feel like working in office improves productivity (not saying it does, this is just perspective a CEO might hold) how would you rationalize to yourself and the shareholders that you’re paying thousands (or millions) for something that you could be utilizing to benefit the company and leaving it empty.

Much of commerical real estate is actually leased, these companies are contractually obligated to pay for the property regardless of if they have people in office or not. They might not be able to exit these leases for years.

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