this post was submitted on 29 Dec 2023
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Work Reform

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[–] Blackmist@feddit.uk 24 points 10 months ago (4 children)

Because they also hold shares in the companies that rent offices.

None of these businesses have given up their office spaces. They're also likely on very long term contracts. Not using them is wasting money.

[–] HauntedCupcake@lemmy.world 26 points 10 months ago (1 children)

I agree with you, but want to point out that not using offices is just perceived as wasting money. They don't actually lose any money if the office is used or not, they might even save money on utility costs and supplies. It's just sunk cost fallacy.

[–] el_abuelo@lemmy.ml 14 points 10 months ago* (last edited 10 months ago)

That's correct, and the board doesn't want to perceive wastage....so whoever is holding the bucket for entering into the lease will be pushing for mandated returns. This is likely the CEO or COO and so holds huge sway and likely ends up in said mandate being implemented.

My last company entered into a new lease during covid, while also making "the way we work has changed" noises. They then spent millions on the refit. And then were shocked that people weren't coming in to admire their amazing space they'd just spent millions on.

[–] KevonLooney@lemm.ee 3 points 10 months ago

But companies are owned separately. Reducing office costs would increase the value of the renting company while decreasing the value of commercial real estate, regardless of their ownership.

Investors owning both real estate and the companies renting that real estate are not colluding. One investor who owns 90% stocks and 10% real estate is not going to help out another investor who owns 90% real estate and 10% stocks.

[–] Ilovethebomb@lemm.ee 1 points 10 months ago

Because they also hold shares in the companies that rent offices.

Source?