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.
Cryophilia@lemmy.world 1 year ago
Giant sunk cost fallacy. Plus old school thinking plus desire for control.
triclops6@lemmy.ca 1 year ago
Pretty much this. A surprising amount of executives are like"we already paid for it so we should use it" with no regard for the actual bottom line impact of forcing people back to work.
You made an unfortunate investment, don’t make it worse with your boomer corporate ideology