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19 Comments
Resume.org [report](https://www.resume.org/1-in-3-companies-are-forcing-return-to-office-due-to-existing-office-leases-agreements/) cited [by Brit Morse](https://www.aol.com/half-companies-office-space-leases-131245447.html):
*[…] Executives say they want workers back into offices for all kinds of reasons. But, as my colleague Jane Thier points out in a recent story for Fortune, there’s another less-talked-about issue driving decision making: office leases.*
*Half of companies that currently rent office space say that these contracts have affected decisions to bring workers back, with 16% saying they’ve had a “major impact,” according to a recent study from résumé-building platform Resume.org.*
*While many of these companies (43%) locked into leases prior to 2019 (and the pandemic), 27% signed agreements between 2020 and 2022 and 30% signed in 2023 or later.*
*Nearly 30% of companies plan to require workers to come in five days a week by 2025, and 73% plan to mandate three days per week or more, the study found.*
*Additionally, half of those with leases say they don’t expire until at least 2028. When they do, a quarter of companies plan to decrease the office space they have, or at the very least, make better use of it.*
*And it’s likely many of these companies may have to move, renovate, or reorganize their spaces if they can’t accommodate workers. Some large companies such as Amazon and AT&T are finding that one of downsides of sudden RTO include not having enough desks to handle the flood of workers.*
Duh. And the forthcoming commercial real estate apocalypse has yet to even happen in large cities like NYC, San Fran, Chicago, etc.
Once these 5- 10 year leases from pre-Covid start expiring, expect to see the fallout.
I’m sorry I didn’t realize me working from the home that I pay for was an additional cost for the company.
“Can’t you see? We’re paying this lease whether our staff come in or not, the cruelty of making our employees pay for our lack of planning is just an added bonus!”
Just implement effective hybrid and wfh processes, ready for when your lease expires and then downsize when it does saving a fortune. By then you’ll have a strong hybrid workforce and be ready see an instant revenue boost. Fuckin morons would rather lose good staff out of… pettiness?
Covid was already almost 5 years ago at this points, surely these leases will be expiring soon and companies can stop with this excuse.
What about the other half?
Let’s not forget about Boards who are often filled with investors who also invest in those retail properties (fearing they lose rents over the next year’s), and other retail stores (fearing they lose footfall from rush hour and lunch traffic).
They’ll be pushing decisions to get people back into the city to protect their investments.
Meanwhile you’ve got companies embracing WFH, saving loads on expenses and improving their finances immensely by not having to deal with a big office space and having much happier employees
Using sunk cost fallacy to torture your employees. Our largest corporations are run by morons.
They really think we are stupid, it would cost less to just allow employees to work remote where possible.
This is purely about control in our modern Techno-Capitalist-Fiefdom
No shit!! Honestly all this tells me is the other half of the companies are lying about it
Well no shit, we all knew this already.
So get out of the lease.. Less daily transportation to and from work helps lower pollution levels (covid proved that). Companies should be forward looking and ensure they are helping the climate ( which benefits everyone). Not to mention the time wasted sitting in traffic for the commute which can be 30 minutes to 2+ hours of wasted time, each way. Work smarter not harder.
And if businesses cut their leases and down size, it will be catastrophic for all of those billionaire property investors as the values will plummet because who needs this prime office space now that everyone works from home.
They’d rather pay rent to their millionaire landlord than pay their employees.
My company which has a ton of unaffected remote employees, recently downsized office space. But now they want people near that office to come in. More remote just have to show up at the twice a year all employee get togethers ( good thing for remote companies to do).
My previous company, owned the building. They also had loads of people, my team included, remote even before covid. Turns out after everyone went remote that the evaluation of the building tanked because it was an empty building. They started mandating an RTO to “improve team building”. When in office quite literally every meeting, every conversation, all was done on teams. We actually got less done because the higher ups would walk around chatting with people all day. It was so useless.
Though this is the same company that said in a company wide meeting that business was really good at 11am one day, I was then accidentally invited to another meeting at 2pm that same day in which they announced they sold off an entire subsidiary and all those people lost their jobs
But they would save money by leasing less space?
Makes no logic
If we’re so worried about wasteful spending, maybe don’t lease space for jobs that don’t need it?