Working from home could wipe $800 billion from office values globally | CNN Business
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Remote work risks wiping $800 billion from the value of office buildings in major cities worldwide by 2030 as the post-pandemic trend pushes up office vacancy rates and drives down rents, according to a new report.

McKinsey said cities could adapt to the declining demand for office space by “taking a hybrid approach themselves,” developing multi-use office and retail space and constructing buildings that can be easily adapted to serve different purposes.

  • @Adalast
    2•10 months ago

    What gets me is that there is every likelihood that the productivity increases cause a larger increase in profits than the losses they are taking from the bad real estate deal they made. Financially, they could probably eat the 10 years of rent or sublet it and reap further productivity gains as the organization continues to adapt and come out so far ahead. Fucking management myopia.

    • Alien Nathan Edward
      1•10 months ago

      in the short term, increased productivity will offset the rent. hell, baseline productivity was supposed to be enough to offset the rent or they would have never signed the lease in the first place. in the long term, the lease expires, they don’t renew it, they get increased productivity and decreased costs, along with their pick of the best and brightest employees worldwide rather than just those within commuting distance who couldn’t get remote work.

      Thing is, while we’re waiting for all of these smart plays to pay off the stock price has gone up, but by 10% less than projected so c suite has fired all the mid and upper level managers.