this post was submitted on 09 Feb 2024
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That doesn't make sense. The companies that want people to come back to the office are the ones paying rent. That rent doesn't get better or worse if people come back to the office.
Yes, thank you! I hate this constant narrative that back-to-office is always tied to commercial real-estate investments, or that there's some magical tax incentive.
Usually what you have is: bank lends money to a commercial real estate company that owns the building. Commercial real estate company leases out office space to one or many companies. When those companies reduce or terminate their leases, the commercial real estate company struggles to pay their mortgage and defaults. Commercial real estate loses. Bank loses. And if commercial real estate had pooled investments to fund the building (along with bank loan), then those investors lose as well.
There are some large companies that own their own buildings, but that's more of an exception.
And the companies are controlled by venture capitalists, who are smart and distribute their investments. So they have interests in various companies, including the real estate companies.