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76% of American CEOs say they may shrink office space
Fortune ^ | 10/22/2020 | LANCE LAMBERT

Posted on 10/27/2020 10:30:23 AM PDT by Vendome

We knew it was a bad time for commercial real estate. We didn't imagine it was this bad.

Among CEOs, 76% told Fortune their company will need less office space in the future. And 28% say they'll need a lot less office space. That's the finding from a Fortune survey of 171 CEOs in collaboration with Deloitte between September 23 to 30.*

(Excerpt) Read more at fortune.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; News/Current Events
KEYWORDS: a; bankrupt; business; city; destroy; office; realty
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To: Vendome

Most large corporations are realizing how much money they could save with people working from home, while still being effective.

I’ve been working from home since March and while I don’t necessarily enjoy it, I know my company has 80 offices nationwide, many of which have less than 20 employees in them.

It doesn’t make economic sense to pay the overhead when they can just make them permanent at-home employees.


21 posted on 10/27/2020 12:19:19 PM PDT by JenB987
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To: Vendome

Not a good time to be in commercial space, especially in a Blue city.


22 posted on 10/27/2020 12:20:22 PM PDT by 1Old Pro (FILL THE SEAT)
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To: Vendome

Over the last few weeks i had been wondering about the QOZ (opportunity zones) . They are a feature of the Tax Reduction and Jobs Act.
Anyway, the OZ allows reinvestment of capital gains tax-free. Possibility of tax forgiveness if money left in the investment long enough.
Not sure how strong demand will be for commercial space into next decade.


23 posted on 10/27/2020 12:22:49 PM PDT by Honest Nigerian
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To: Spktyr

That’s great. I’m not paying for my own document scanner to help my fortune 100 company out though. They’ll just have to accept ‘oh that customer specification from a few years ago, you need it for a big proposal and you want me to dig that up? I think it went to the landfill over on elm street’.


24 posted on 10/27/2020 12:25:27 PM PDT by pepsi_junkie (Often wrong, but never in doubt!)
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To: JenB987
It doesn’t make economic sense to pay the overhead when they can just make them permanent at-home employees.

It works out okay for me because last fall, as a majorly lucky coincidence, I converted a portion of my garage into a home office. But I see a lot of people on calls working at their kitchen tables because they don't have a dedicated workspace. Those people are screwed with this becoming permanent.

25 posted on 10/27/2020 12:28:06 PM PDT by pepsi_junkie (Often wrong, but never in doubt!)
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To: pepsi_junkie

As an IT contractor who has worked with F100 companies, my experience is that almost all of them will pay for such a scanner, assuming they don’t have one in inventory they can lend you for the purpose - which most do. In this case, you’d just be deliberately obtuse and obstructionist because of the loss of your pwesciousss widdle office.


26 posted on 10/27/2020 12:30:11 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Vendome

27 posted on 10/27/2020 12:31:40 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: pepsi_junkie

What times it is possible to work from home I use an upstairs unfinished room for a day.

Afternoons a lot of times, the garage and the inner rear fender of a Willys jeep.


28 posted on 10/27/2020 12:32:02 PM PDT by wally_bert (I cannot be sure for certain, but in my personal opinion I am certain that I am not sure.)
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To: 2aProtectsTheRest

WRONG.


29 posted on 10/27/2020 12:34:13 PM PDT by spacejunkie2001
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To: wally_bert

I’ve done video conferences while riding a motorcycle. Tech is wonderful. :D


30 posted on 10/27/2020 12:34:25 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Hazwaste

that’s exactly how it will be across the nation. this separation and WFH model is a big fail and ends soon; probably near abouts 11/4


31 posted on 10/27/2020 12:35:42 PM PDT by spacejunkie2001
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To: Joe 6-pack

agreed.


32 posted on 10/27/2020 12:37:00 PM PDT by spacejunkie2001
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To: Spktyr

I don’t think I am that coordinated.

Maybe a long stretch of highway and little to no traffic. Maybe.

I plan on getting the military style dash for my Willys jeep. Plenty of empty space on the passenger side.

Maybe some kind of bracket to support a tablet, phone or small laptop could work.


33 posted on 10/27/2020 12:38:30 PM PDT by wally_bert (I cannot be sure for certain, but in my personal opinion I am certain that I am not sure.)
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To: pepsi_junkie

I agree...I’m one of those people. And I have 2 small kids...4 and 2. They don’t understand mommy sitting at a computer 10 hours a day.

I admit, given my hectic personal schedule, I appreciate the flexibility, but it comes at a cost. I work in one of my corporate HQ’s so I know my office will stay open and once we’re allowed back, I will have the option to work a couple days in the office and the rest at home.

We had some survey a few months back about how people felt about their personal situation and work life balance. Apparently a lot of these people love this. They must not have kids.


34 posted on 10/27/2020 12:44:54 PM PDT by JenB987
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To: Vendome

Former cubicle worker who’s been remote working from home since 2008 here.

Years ago, industry was talking about the workplace of the future, imagining what it looked like, needs, amenities, benefits etc...

I told my bosses not to buy in - my workplace of the future looks like my house. And their workplace of the future looks like theirs.

Once you CAN do something virtually, and it’s substantially similar to what you do in-person, the financial benefits to doing it virtually will always outweigh the more nebulous benefits of being in-person.

Fast forward to this article.


35 posted on 10/27/2020 12:50:11 PM PDT by Personal Responsibility (If we disarmed democrats gun violence would decrease by 90%.)
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To: wally_bert

Those brackets and holder systems are actually commercial products. RAM Mounts is the standard in that segment. I have their stuff on the motorcycle (to hold the phone) and various other vehicles.

https://www.youtube.com/watch?v=uJ0IGJrUyqY


36 posted on 10/27/2020 12:50:58 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr
My company has several. They require me to provide a contract number to use it soit can be billed to the contract, or I have to get approval from a VP which wont be happening. That leaves me appealing to them as a favor, which they'll do but only in small doses. I know of what I speak, I can't just ask them to bulk scan stuff for me because I wish I could keep it. I also can't scan it myself because I am forbidden from installing hardware (I dont have admin rights on my laptop) and I am forbidden from bringing company papers home if it's labelled proprietary and since that's on the default template it always is.

Thanks for you smug condescension though, much appreciated.

37 posted on 10/27/2020 12:53:53 PM PDT by pepsi_junkie (Often wrong, but never in doubt!)
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To: Joe 6-pack

Interesting perspective on established vs new employees. Agree that a new employee would be at a disadvantage.

I think a hybrid model, where employees who can function while working remotely (not managers, directors, etc) work a day or two remotely and the rest of the time in the office is the best of both worlds. But in order to gain the benefit of a downsized office the work spaces would have to be shared. Brings up the need for a higher level of cleaning than most cleaning contractors are providing.

Another option would be to let process-intensive positions (e.g. AP processors, procurement) work remotely 100%, with knowledge workers in the office.

It’ll be interesting to see what companies decide.


38 posted on 10/27/2020 1:22:18 PM PDT by Hazwaste (Democrats are like slinkies. Only good for pushing down stairs.)
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To: a fool in paradise

“Your office, not theirs.”

Exactly. In the 1970s, office buildings all over town were reconfigured into cubicles, except for upper management which retained their enclosed offices.


39 posted on 10/27/2020 1:33:22 PM PDT by riverdawg (Wells Fargo is my bank and I have no complaints.)
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To: Vendome

I wonder how many CEOs are calculating how much they can reduce pay and benefits because the employees aren’t having to drive into work, or pay for parking, or lunch, or even new work attire.


40 posted on 10/27/2020 1:37:46 PM PDT by punknpuss
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