The office has become a real hot potato. The crux of it is that demand is down and staying there, and cities, companies and individuals are all winners or losers, but the losers can try to lose less by passing the cost on to someone else.
And big tech has the cash to absorb the blow of forcing everyone back to the office, but it marks them permanently as a dinosaur firm, a place where there used to be A-rank people but they all left for somewhere more flexible.
In the previous era it was hard to avoid pursuing a high capitalization play - either building or merging into a more consolidated firm - because the low interest rates meant that if you didn't do it, someone else would borrow up to do it and weaponize that against the little guys. And real estate was part of that, it was an added-value benefit to build out a bespoke campus with a huge parking lot and to bus in your employees. This is more of a "tide's going out, see who is swimming naked" environment where marginal cost structure dominates and you can opt to have only a small office in a downtown core and get the fire-sale prices and the benefits of public infrastructure, or just go all remote.
And big tech has the cash to absorb the blow of forcing everyone back to the office, but it marks them permanently as a dinosaur firm, a place where there used to be A-rank people but they all left for somewhere more flexible.
In the previous era it was hard to avoid pursuing a high capitalization play - either building or merging into a more consolidated firm - because the low interest rates meant that if you didn't do it, someone else would borrow up to do it and weaponize that against the little guys. And real estate was part of that, it was an added-value benefit to build out a bespoke campus with a huge parking lot and to bus in your employees. This is more of a "tide's going out, see who is swimming naked" environment where marginal cost structure dominates and you can opt to have only a small office in a downtown core and get the fire-sale prices and the benefits of public infrastructure, or just go all remote.