‘Zombie Offices’ Spell Trouble for Some Banks
www.nytimes.com
Bank tremors serve as a reminder: Just because a crisis hasn’t hit immediately doesn’t mean commercial real estate pain isn’t coming.

This is the real reason for companies wanting people back to the office.

All this talk about collaboration and team spirit is just the publicly given reason for wanting people back to the office.

The real reason is that now the owners of the buildings are losing money.

Cry me a river.

  • @whoelectroplateuntilEnglish
    13•4 months ago

    So more or less, since many businesses are only keeping their offices because they have multi-year leases preventing them from simply packing up and going fully remote or downsizing to a smaller office, we can expect occupancy rates to continue falling and slow-burn exacerbating the commercial real estate crisis. And really, the problem here is just that banks are overinvested in commercial real estate, not knowing that a pandemic would alter work patterns in a lasting way. So again, we’re all in for a fun ride on the roller coaster that is capitalism, literally because of problems caused by real estate speculation.