[HN Gopher] Who still needs the office? U.S. companies start cut... ___________________________________________________________________ Who still needs the office? U.S. companies start cutting space Author : onetimemanytime Score : 184 points Date : 2020-07-23 21:14 UTC (1 hours ago) (HTM) web link (www.reuters.com) (TXT) w3m dump (www.reuters.com) | holler wrote: | How will this affect commercial real estate? I've already noticed | an uptick in "for lease" signs on commercial buildings throughout | the major city I live in... | anpago wrote: | Big effect as it will on many pension funds and so on. | uberdru wrote: | We need ateliers, not offices. | david927 wrote: | Brilliant. I hope you don't mind if I quote you. | bluekite2000 wrote: | A few years ago I had to commute from Orange county to Manhattan | Beach. It takes 1 hour to get to the office (leaving at 5:15am in | the morning) and 1.5 hour to get home (leaving at 4pm). By the | time I got home I felt dead. It was a 30 mile trip. So to me the | long commute is what makes WFH convincing. | jariel wrote: | This is going to be another short decision making drive, decided | by the CFOs because they have the 'cost' numbers in front of | them, whereas issues like productivity are a little more | intangible. | | We work in 'open spaces' because the CFO can definitively say | "$/employee!" - whereas the impact on staff is difficult to | measure. The 'up front cost' is the driver. | | This same 'cost logic' will apply to remote working, once Ops can | see 'how cheap it is' they will love it but it may have nothing | to do with true ROI. | dave_4_bagels wrote: | Personally, I can't wait to get back into an office. Working from | home has helped me break some previous bad habits and improve my | self-discipline - which both positively impacted my productivity | while working from home. | | However, even with commuting time, I'm happier (due to distinct | separation of home-time and work-time) and more productive when I | have an office I work from 3-4 days a week. | | During my last "remote" engagement I joined a small community co- | working space in Boston after two weeks of "true" work from home. | I've found my idea balance is 3-4 days a week in-office and 1-2 | days "remote". | | I envy those of you who can work remote without issue, even as an | introvert who dislikes lots of people and distractions I can't | see "remote first" as something I enjoy going forward. | chasd00 wrote: | i've been pretty much 100% remote the last 5 years or so. I | definitely rely on coworking spaces to get out of the house and | around other humans. It's especially bad when kids are in | school and wife is working ( she's a teacher ). Being without | human contact all day every day really weighs on me over time. | chasd00 wrote: | It's interesting to me that companies are threatening to reduce | pay if a remote employee moves to a lower cost of living area. | It's hard to understand the logic when geography is the only | change driving the decrease in pay. Same person, same job, same | skills, same productivity, the only thing that has changed is the | person's cost of living. | | I wonder if a remote employee working in a low cost of living | area moved to a high cost of living area would their pay be | increased or would the company put up a fight? "You voluntarily | moved to a high cost of living area, why should i pay you more?". | However, "you voluntarily moved to a low cost of living area, i'm | paying you less" is reality. | birdyrooster wrote: | Great observation. It's a shake down because they have leverage | over you. | ipnon wrote: | Markets in everything: | | Your salary is the balance between the leverage you have over | the company and the leverage the company has over you. If | they can get rid of you and hire someone remotely for half | the price they will. If you want to stay in an expensive city | while working remotely and the company can't do without you, | they won't. | bpodgursky wrote: | It's hard to hire remote employees in different COL areas | without opening yourself up to legal liability, if people are | able to bounce around and hold onto COL salaries | disproportionate to the local area. | | Ex, if a bunch of white and asian bay area employees relocate | to Florida, taking their salaries, and then Facebook hires some | local hispanic employees at 1/2 the rate... well, you can try | to explain exactly what happened after you get sued, but that | doesn't sound like a lot of fun. And even if you legally get | away with it, you are going to have a lot of REALLY unhappy | employees. | | Not to mention you're opening yourself up to a real game, where | employees move to the Bay Area for a year to get hired at a | high salary, and then immediately leave for 2x the salary. All | you've done is turned salaries into a game that benefit highly- | mobile employees. | | So I definitely understand why this feels shitty, but I | honestly can't see it working any other way for large | corporations. You have to have some kind of local salary | adjustment you can stand behind, when you're remote-first | hiring. | ngngngng wrote: | I've thought about playing this game, one of the largest | retailers in the country just pays you based on the cost of | living in your zip code. I could move in with my in laws in | Honolulu for a few months and use that zip code, get hired, | and then move back to my low cost of living area. | dropit_sphere wrote: | Realistically, there will be two scenarios: | | Company Type 1, where they don't care where you live | | Company Type 2, where they explicitly care, and have some | stupid table they look at. | | I suspect it will lead to a lot of employees at T2 companies | getting shafted. Not everyone is as Online as the HN crowd. | sneak wrote: | You could simply never give your employer your residential | address (use a post box) and then just continue to not do so | when you move. | | My personal residence address is need-to-know, and if I were to | have an employer, they would have no need whatsoever to know my | residential address. | | If you're remote, it's simply not their business. You might | have an extra step when filing state income tax, but that's | your liability, not theirs. | sokoloff wrote: | Your employer probably has to pay state taxes/state | unemployment insurance, may have to ensure that they are | filing certain state forms as an employer of a resident of a | given state, may have to adjust health care policies to | address state-specific requirements (or residency | requirements of the plan they have, etc). | | Unfortunately, given the run-amuckness of registration and | compliance requirements, it probably is needed for your | employer to know where you live (or at least in which state | and local taxation/regulation entity). | jorblumesea wrote: | > You voluntarily moved to a high cost of living area, why | should i pay you more?". | | This does happen now when companies have multiple offices. I've | seen people move from LCOL to HCOL and see a cost of living | adjustment. | Igelau wrote: | Someone needs to run the experiment. Move to some place in | Russia outside the Moscow metropolitan area. Apply to Gitlab. | If you get the job, relocate to San Fran. See if your pay | quadruples. | alistairSH wrote: | My wife's employer makes fairly drastic COL changes based on | office location (bank with large corporate offices in 3-4 US | cities and branches worldwide). From the lowest COL office to | the highest, it can be 10s of thousands USD. | | Edit - they don't officially do WFH (outside COVID) so cant | comment on that. | jcmontx wrote: | I seriously can't believe some companies have the nerve to pull | off something like this | spectaclepiece wrote: | What I find most interesting is how this might transform inner | cities. If central space is cheaper more space will be available | to artists and other cultural activities while also making room | for early stage startups which could give rise to a renewal of a | vibrant inner city atmosphere in places where this has been on | the decline due to high rental prices. | m0zg wrote: | Sure, the ability to work from anywhere in the world coupled | with a severe epidemic, riots, looting, and boarding up of city | centers will give rise to a "vibrant inner city atmosphere". | Uh-huh. | gberger wrote: | Cities will still exist even if remote work rises | significantly. There is a huge amount of buildings and | infrastructure which won't just disappear. Rather, demand for | them will fall, and since supply is flat, prices will drop. | This will give opportunity to less lucrative ventures to work | at the city center. Artists, for example, would have a harder | time working remotely. | m0zg wrote: | If we don't get a working, _and safe_ vaccine in the | foreseeable future (a real possibility), cities could all | turn into Detroit - high density living or work just won't | be epidemiologically viable. | rabidrat wrote: | It's a common fallacy that rents fall when demand drops. In | fact, they often don't, particularly for commercial space; | the owners choose instead to let the spaces go unused. I've | seen this happen up close with several buildings my city, | in several neighborhoods. There was an article a while ago | about how Greenwich Village suffered a similar fate. | mrep wrote: | Got a source to back up that claim? Detroit for example | has seen inflation adjusted commercial office space | prices massively drop: | | "Adjusted for inflation, the average office tenant paid a | peak price of $34.34 per square foot during the fourth | quarter of 2000, 65.5 percent more than the current | average rate of $20.76, according to Newmark Knight Frank | data. It's almost as deeply pronounced for Class A space | -- which has the best amenities and finishes. Today's | Class A rental rate is $24.36 per square foot, but in the | third quarter of 2001, tenants paid inflation-adjusted | rent of $38.12 per square foot, 56.5 percent more than | now" [0]. | | [0]: https://www.crainsdetroit.com/article/20170730/news/ | 635141/d... | chosenbreed37 wrote: | Can the city councils do anything to counter that? I | wonder...I heard about Frome (Southwest England) where | the local council took proactive steps to prevent the | high street being filled with betting shops. I think they | lowered business rates significantly and possibly other | measures. | aeternum wrote: | A land value tax can help quite a bit. It can both | prevent landlords from capturing all / most of the value | when rents rise and also help act as a cushion when rents | fall. | | The current property tax system that most cities use make | little sense. It penalizes people for improving and | updating the structures on their land. Cities should be | encouraging property improvements. | pjmorris wrote: | It's not the 'everybody works there' that does it, it's the | 'cheap enough that artists can live there' that does it. My | mom split her time between art, her true love, and working as | a secretary, or a maid, or an office manager. She had a way | of living near where the art was happening, as artists tend | to have very little money, as did she. She could afford to | live just off the Lincoln Road Mall in South Beach in the | mid-80's, as did hundreds of other artists. The South Beach | that is now luxurious and pricey was once cheap, and shabby | and a bit dangerous. That's really the seed of a vibrant | inner city atmosphere. She repeated that (to smaller degrees) | several times in her life. | andyljones wrote: | There's no shortage of cities where central space has become | cheaper after their industry has collapsed, and they do not | have a great record of turning vibrant. The rust belt and the | north of England are the first areas to mind. | notJim wrote: | That's true, but if now there is central space freeing up in | major cultural hubs like NYC and SF, maybe it could be cool. | These places might, although to a lesser extent, have the | customer base of affluent people to support new cultural | spaces. | cortesoft wrote: | For the short term, maybe, but will they still have that | customer base if those affluent people don't need to stay | there for work? | notJim wrote: | IMO that's a big open question. Anecdotally, I've heard | of a lot of people moving away from these cities, but | most of them say they intend to move back. Since the | appeal of both cities is largely in activities that are | unavailable now, this is plausible to me. But it's also | plausible people will find they miss the city less than | they expected. | _jal wrote: | There are important differences between cities in regions | where an industry collapsed and where competition for down- | town office space has collapsed. | | One of them lost their economic engine. The other is | undergoing a real estate adjustment. | ImaCake wrote: | I have seen this happen in a medium sized coastal city on | Australia's east coast. The major employer shut down in the | early 1990's and the once vibrant inner city did indeed | become a cesspool for a decade. But begining in the early | 2000's it started to come back to life, and the people who | moved in were the artsy types and the city became a wonderful | and curious place while still having a bit of a air of danger | and decay. These days it is somewhat gentrified, but it has | become very beautiful and pleasant. In the end my city | doesn't really have a central core which is a little | problematic for public transit (terrible quality), but the | old CBD is a lovely place. | milquetoastaf wrote: | Madchester, tho | irrational wrote: | My company is just finishing building millions of square feet of | additional office space on our campus. I wonder if someone up | high is starting to regret that decision. | Andow wrote: | AZ? | rwmj wrote: | If AZ = Astra Zeneca then drug research is not something you | can easily do at home! | perfmode wrote: | Could anyone have honestly foreseen the pandemic and its | ensuing upheavals? | | Of course, one is free to regret. | | Now, it would seem that the best we can do is make the most of | the information available to us in the present moment. | acituan wrote: | > Could anyone have honestly foreseen the pandemic and its | ensuing upheavals? | | Absolutely. Previous WHO classification has a "Phase 4: | Sustained community-level outbreaks -> Medium to high | probability of pandemic" designation, which has a roughly | once-a-decade frequency historically. Compared to multi- | quarter, multi-year scale of real estate planning, 10 years | is not infinite long term. Of course it is so in comparison | to quarterly earnings, share prices, average tenure of a fund | manager, a CEO and so forth, so it doesn't get priced in or | gets bundled with other catastrophes. | perfmode wrote: | Interesting. Have any people/groups/organizations been | credited as having made prescient, non-trivial bets | anticipating this pandemic? | danny_sf45 wrote: | The only reason for me to not go back to the office is: fixed | working hours. Sure, my contract says I have to work 40h/week, | but I just can't. If I'm at the office, I would probably work | (focused) around 4 or 5 hours. The rest is "wasted" with: chat | with other coworkers (non-work related stuff), breaks... but I | have to be there for 8 hours no matter what. At home, I can work | those 4 or 5 hours (focused) and call it a day. I don't have to | pretend I'm working, I just close the laptop. | | Same outcome (for the company), less (wasted) hours for me. This | is impossible to achieve if one has to go to the office. (can you | imagine entering at 9am and leaving at 2pm while telling | everybody: "hey, I cannot work anymore, I'm only able to work | focused 5 hours per day. See you tomorrow!".) | orwin wrote: | Yes, i'm the same. And if you're like me, i suppose sometime, | in high pressure situation, you can easily work 10 hours | straight. Doing this at the office is impossible, doing this | home is easy (if it stay exceptional). I'm more productive home | than i was at the office, and this is really surprising for me | ( i assumed i was just a slacker). | cuddlecake wrote: | I've had one of the most productive days yesterday, because | my internet went off. | | Went on a berserk coding spree from 1PM to 1AM with some | small breaks in between. Completely cut off from any | distraction, I was able to concentrate. | | Willpower and discipline are nice, but real restrictions that | are impossible to circumvent are better, at least for me. | hinkley wrote: | I have basically stopped eating lunch. | | I'm not saying that's a good thing (it really isn't, and my QoL | improved when I forced myself to take a lunch break every day), | but it does change how much time my butt is in the seat between | 9 and 5. | | What I am definitely missing out on is small talk with | coworkers. Small talk builds rapport. Rapport de-escalates | engineering disputes. I expect a year from now we'll all be | complaining about how nasty everybody is when everybody is | working remotely. | hesdeadjim wrote: | Guess I must be wired differently, but I look at that extra | time and think "what more could I do?", rather than "I'm | convinced this is the output required of me, thus I will do no | more with my new found time." _shrug_ | danny_sf45 wrote: | Sure, if you can do more go for it. I just can't: my brain is | tired, my eyes hurt, I cannot produce any productive | output/outcome. | Aeolun wrote: | I think it's generally more related to a lot of time that's | wasted having ad-hoc conversations with people. | wil421 wrote: | Someone I heard recently phrased it very well: | | "I don't want to spend 2 hours driving a day to do 4 hours of | work." | modzu wrote: | then there are those of us with kids and so's around. i can | barely get a bloody thing done and for one can't wait to go | back! | dijit wrote: | Not sure why you're being downvoted, being without children | (or having a dedicated space outside of the home) is | important. | | Kids don't understand time or space boundaries very well, and | will interrupt your focus, your meetings, your work in | general. | | I have a colleague with kids and he was the first to | volunteer back to the office.. I am without kids and I never | want to go back. | | This works out decently well, because he's alone: thus, safer | than if we all came back. | | But the issue is if there was more people in the office, then | they would make decisions which the rest of us are not privy | to. | Koshkin wrote: | Looks like nobody else wants to admit that. | y2bd wrote: | Isn't this more of an issue of school being out? Would your | kids going back to school solve this issue? | Polylactic_acid wrote: | I feel the same. For the last 3 hours of the day I just state | at my screen in zombie mode. With wfh when I start to feel | braindead I just lay in bed for 15 minutes and when I come back | I feel refreshed for the rest of the day. With no pressure to | look like you are constantly working you can do what works best | since no one can see more than your output at the end of the | week. | mavelikara wrote: | > chat with other coworkers (non-work related stuff) | | > ... | | > Same outcome (for the company), | | What if the company cares for those non-work stuff - for | example, some of those chats being a mentoring conversation? | Koshkin wrote: | A mentoring conversation is actually (or should be seen as) | work stuff. | birdyrooster wrote: | I don't tell my coworkers when I do this but at Apple we are | adults and can go to the bathroom without permission. You can | come and go as you wish, that notwithstanding the waste of | colocating with and/or commuting to an office. I want virtual | reality so I can be in shared spaces for impromptu conversation | and coworking. | | (Edit: I really don't miss my boomer/genx coworkers jamming out | to hair metal) | mc32 wrote: | The most productive workers barely scrape 50% productivity; | however, idle, chat, socialization and other "wasteful" time | isn't wasted. You learn things about the needs of other groups, | colleagues, the politics and all sorts of things you'd never | pick up on working remotely. | katbyte wrote: | I'd rather spend that time on other things tbh | danny_sf45 wrote: | I agree that the socialization part is not actually "wasted" | time and I would love to do it as much (or as little) as I | want per week (ideally one or two days, instead of five days | per week on a forced basis). | baron_harkonnen wrote: | > all sorts of things you'd never pick up on working | remotely. | | When people say these things I seriously question if they've | ever worked remote before. Yes if being remote makes you | atypical for your workplace, then you'll probably be left | out. But if you're working for a remote-first team the it's | completely different. Nearly all of my closest coworkers I've | met have been at remote companies. | | I have had tons of interesting conversations, brainstorming | session and just generally fun discussion while remote. | | Honestly, I have personally found the amount of more toxic | conversations also drops when remote. The problem with in- | office socialization is that you have to socialize with | people you might not particularly like (working with people | you don't like is fine, but having to have conversations with | them, go out for team drinks with them etc is another thing). | This leads to generally more toxic behavior, since you have | to put more energy into those social interactions. | Polylactic_acid wrote: | I have actually spoken more to my coworkers while remote | than at the office where its one bit open plan room where | having a conversation will bother 20 other people. | rightbyte wrote: | Political power play doesn't work out as easily remotely. | Social manipulations is harder. That is my observation. | throwaway894345 wrote: | I would be very interested to hear more about these claims if | you can share a link. | zwayhowder wrote: | Would love to read any research that backs that number. (I'm | not saying you're not right, I just like reading research | papers). | dijit wrote: | This one says we are only productive about 40%, which is | in-line with other stuff I've read: | | https://www.inc.com/rebecca-hinds/new-research-says- | workers-... | throwawaysea wrote: | I really hope this trend sticks so that we can decentralize away | from big urban centers. It would really allow us to free | ourselves from crowded spaces/amenities, painful commutes, and | high prices, as well as letting us seek out the community/culture | that fits us best. | m_sanders wrote: | There was a fansinating take on the potential impact of a WFH | revolution on white collar works in The Telegraph the other day. | | As companies embrace working from home and downsize their offices | presence, a lot of the barriers to entry to offshoring start to | disappear - if everyone is remote then a remote individuals in | cheaper Eastern Europe will likely integrate a lot easier than | when most the employees were sitting together in expensive | London. | | White collar workers could face the same globalisation pressure | and wage deflation that's happened to blue collar workers over | the last 50 years or so. | | Personally, if my team stays remote, then our next hire will most | likely not be London based. There's a much larger pool of | European talent available to us and we're now better setup to and | culturally open to hiring remote first. This isn't something our | company would have considered before COVID. | bitL wrote: | London is notorious for low SWEng salaries; you might not have | any other choice than to contract somebody in Ukraine who | didn't escape somewhere else if your own employees get higher | paid remote gigs in the US... | [deleted] | jdhn wrote: | >White collar workers could face the same globalisation | pressure and wage deflation that's happened to blue collar | workers over the last 50 years or so. | | I've been thinking about this a lot recently. Lots of white | collar people seemingly have a very "meh" attitude towards | manufacturing getting outsourced. What will the attitude be | once these white collar jobs start leaving? | philjohn wrote: | The flip side to that is with the UK leaving the EU will there | be legal and taxation hurdles. Also, sometimes having local | context, and the ability to meet locally at short notice is an | important requirement. I don't think it's as clear cut in all | cases. | visarga wrote: | Doesn't work well when time zone difference is too large, | though. | chosenbreed37 wrote: | > Doesn't work well when time zone difference is too large, | though. | | That is true. Although I've noticed that some outsourcing | companies are comfortable working to the office hours of the | headquarters. | ghaff wrote: | I was already unofficially remote. Meetings are actually a bit | better with everyone at home on camera. The thing I miss is | travel which was about 1/3 of my time. (And, fortunately, I live | in a fairly rural location with a dedicated office and forest | paths out my door.) | davidw wrote: | I miss working in the office a lot. It's nice to have a physical | separation between 'work' and 'home'. And I enjoy the company of | my coworkers - it's fun to occasionally chat about something | tangential to work, perhaps some interesting problem they dealt | with in the past, or local politics or whatever. | [deleted] | torcete wrote: | I wonder if this is going to be the beginning of the decline of | big cities. Who wants to live in a expensive place if you don't | need to commute to work everyday? | game_the0ry wrote: | Corporate managers need to run the following exercise: | | 1) Quantify the loss in productivity from employees working from | home. Call this "x." | | 2) Calculate the savings in rent you don't have to pay for | putting the company's employees in an office. Call this "y." | | 3) If x < y, pass on savings to shareholders, take your bonus, | and have a nice day. | | 4) Explore hiring candidates outside of major metros and see if | you can pay them less. | | Will not happen, of course. The modern corporate middle manager | thrives as a sycophant, constantly praising their bosses / and | boss's bosses - yes sir / ma'am, how high would you like me to | jump for my bonus? Thus, they are desperate to get back into the | office and play that sweet, sweet game of "office politics." | Also, they probably leased additional space for more tech and | digital marketing workers, so they are trying to not regret that | decision. | rwmj wrote: | What loss of productivity is that? Knowledge workers get a | whole lot more done when they're not being constantly | interrupted in an open plan office. | game_the0ry wrote: | x can be negative. | Terretta wrote: | So call it gain and have X positive. | | Even the folks in non-tech jobs who hate WFH, griping about | missing look-em-in-the-eyes managerialism, or how they | can't do management-by-walking-around, acknowledge the past | few months have been more productive and curiously more | collaborative (right people across national offices invited | to "meetings" and able to attend). | | So actual productivity up, other factors important to | Taylorist managers (but not to individual contributors) | sharply down. | s1t5 wrote: | Hopefully in the future we'll have more options rather than | offices becoming completely obsolete. Personally I still need a | good office environment to do my best work and an all-remote | future looks pretty bleak. | fasteddie31003 wrote: | We will let the free market decide if an office is a net positive | to the company. Each company will be different. | j45 wrote: | I see a real rise in each company having it's own internal | coworking/hoteling. | | Getting together still has value but spaces will be transformed | more for collaboration... and also small individual offices as | work pods | jorblumesea wrote: | I wonder if this will result in the hollowing out of the American | downtown similar to the 60s and suburban white flight. It just | started to feel like the American inner urban core was coming | back, density was increasing, more funding to transit. | | One of the great tragedies of American society in the 20th | century (in my opinion) was a focus on building everything around | the car, the suburb, and the commute. Producing well paid office | workers disconnected from any sort of community or the issues | around them. Everything is a drive away, no one walks anywhere, | feelings of isolation and segregation. | david927 wrote: | This is a huge question and I don't hear a lot of people asking | it. What is the future for cities? How will this change | suburbs? How can we create optimal communities? | | I think it goes hand-in-hand with the coming loss of the car as | a personal device and its transformation into "individual | transit" as opposed to "mass transit". In the future, when you | can use an app to get an autonomous vehicle to take you where | you want to go, communities will restructure. Parking lots and | garages will go away, opening up a huge amount of real estate. | | I wouldn't mind starting a sort of "virtual salon" to talk | about these larger questions. It's fascinating. | triceratops wrote: | > yet more focus on sprawl and car based transit. | | Would it? With commutes dead, a good chunk of weekday traffic | is gone. | jorblumesea wrote: | It will, because people will buy farther out. One of the | major drivers of the urban core, density and transit was how | bad traffic can be. You want to live closer to work, which is | usually downtown. Now you want pretty much live on the | outskirts or the sticks. Without the commute, nothing | stopping cities from becoming extremely diffuse. | fortran77 wrote: | I don't have to work in an office, but I do. My consulting | company owns commercial space in Sunnyvale and Tel Aviv. I like | separating home and work. I work at work, and do non-work | activities at home. | | I worry that this trend is simply to squeeze employees harder. | Now employees have to pay for their own workspaces, desks, | chairs, etc. | [deleted] | dougmwne wrote: | If I may ask, how far do you live from your office? Is your | home comfortable and does it meet your needs? Is your office a | pleasant and productive space? I know many people who do | grueling 2-hour, one-way commutes so they can afford a modest- | size home and half-decent schools for their kids. Consider that | many people might not be in your position. | JMTQp8lwXL wrote: | The owners of traditional office buildings who will see the most | success in this crisis will be those who realize that --while, | yes, corporations may no longer need as large a footprint-- | there's still valuable use of the capital infrastructure they | hold. The first ones to pivot to alternate property uses will do | best. | | Another set of commercial property owners will sit on their | above-market lease agreements and try and squeeze blood from a | stone. | MangoCoffee wrote: | we probably going to needs Starlink to cover rural area first. | rossdavidh wrote: | Predicted headline about 1 year from now: "U.S. companies decide | to move away from WFH arrangements, return to office". | | (saying this as someone who's been WFH for a few years now) | progman32 wrote: | A coworker of mine recently pointed out that not only are | businesses saving money by closing offices, they're also | offloading other costs to the employees. Things like: | | - Water, electricity, HVAC, sanitation | | - Desks, chairs, ergonomic equipment, safety equipment | | - Telecom, networking support | | - Physical security | | - Office supplies | | - Misc. amenities like coffee and snacks | | Some companies are taking this into account, but not all. | | A personal anecdote: we had an all-hands meeting today and the | amount of emotion on display when the topic turned to returning | to the office strongly suggests people want to go back. Whether | or not that's temporary nostalgia for a previous life or an | enduring need is an interesting discussion, but there are | definitely people wanting to go back. I for one am even more in | the no-remote-only-gigs camp given recent events. | | edit: formatting, I'll learn eventually | vecinu wrote: | Your coworker is totally on the money with this analysis. | | More so, I think folks like me that had a 5 minute walking | commute are losing out a ton of benefits by not being near the | office anymore. | | I'm lucky the weather's been cooperating but if I had to have | the A/C on for days I would easily be spending $60-100/mo just | for HVAC, forget the extra water, electricity and other utility | costs for the extra usage at home. | | We got a $500 WFH stipend but it definitely won't cover 12-16 | months of this. | | Overall though, I realize I'm in the minority and most people | are winning back their time and money. | technofiend wrote: | I can take public transportation which is $2.50 a day. If I | don't then parking downtown is $150 per month in our current | building, but no one is allowed to go into the office. We're | getting a new building next year when we do return to the | office and parking will be $250+ across the street or $300+ | for garage attached to the same building. That's what it | costs me to run my ancient, inefficient 220 volt window unit | and keep an uninsulated wooden garage apartment cool in the | summer. I will gladly go back to the office when it's | allowed. | horsawlarway wrote: | At least with my own company, the approach has been pretty | reasonable. | | They know they're saving money in the long term on space, and | they're splitting that with employees pretty fairly. $1500 up | front for all existing employees and all new hires to | provision a space to work remote, and a $125 a month in | reimbursement for internet/phone/electricity, no questions | asked. | | Frankly, it's made the transition pretty positive for all | parties. The company saves a ton in the long term on rental | space, and employees get a nice perk. | | There are still folks that would prefer not being remote, but | most folks are pretty happy without a commute. | taurath wrote: | I think it depends where you live and your situation. I have | coworkers in small NYC studios who just want to get outside. I | have others who don't mind not taking the train for an hour a | day. | | Many coworkers have a nice big house to work from. The ones | with kids most want to come back, because they appreciate the | mental separation they get. | | Remember, Quarentine Work Is Not Remote Work - | https://www.hanselman.com/blog/QuarantineWorkIsNotRemoteWork... | setpatchaddress wrote: | This. People with many young kids, especially, seem to be | absolutely miserable. | | More interesting than remote/in-office is that we don't seem | to be acknowledging the inevitable permanence of social | distancing measures. No more four-dudes-in-an-office. No more | coming to work with mild cold symptoms. | taurath wrote: | Maybe, oh goodness please, the return of actual OFFICES. | With DOORS. Thats the only way you're getting me to come | back into a work office, barring a rediculous raise. | chosenbreed37 wrote: | > A coworker of mine recently pointed out that not only are | businesses saving money by closing offices, they're | | I hadn't considered this. I've always thought that many | companies are tied to long leases they wouldn't be able to get | out of that quickly. I can imagine some savings on the other | associated office costs. | | > I for one am even more in the no-remote-only-gigs camp given | recent events. | | Interesting...could you please elaborate on this? | kayodelycaon wrote: | My company was at the end of their lease for several office | buildings. They've since closed all but our largest offices. | We have some jobs that can't be done remotely (security and | certification requirements precludes outsourcing.) The | remaining offices are running skeleton crews with the | heaviest precautions we can do while remaining operational. | danny_sf45 wrote: | Another personal anecdote: in my company nobody wants to go | back to the office. | Guest42 wrote: | In my office the parents and people that have their own | offices as opposed to cubicles are the only ones looking to | return. | btgeekboy wrote: | Sure says a lot about open workspaces. | gsk22 wrote: | No it doesn't, it's just one anecdote. Anecdotally, most | people in my office are excited to return, including | those who work in an open workspace. | sergiotapia wrote: | I had the best of both worlds, I went in once a week - but I | loved going in. I met with my team, talked with our people | outside my division. Grabbed some good "city miami" food, no | "suburb miami" food. It was like a mini-vacation, every week | and it energized me for the following week. | | Hard problem to solve. Other people in the company had to go in | every day, and I'm sure they LOVE not having to commute, and | for good reason. | | Companies can't really "rent an office space" for one day a | week can they? It's not realistic. I wonder what will work look | like in the next 2 years. I'm glad I had a chance to experience | the office setting for a year at least. | mperham wrote: | > Companies can't really "rent an office space" for one day a | week can they? | | Not exactly but they could get 1/5 the space and rotate | people onsite one day per week. | misterbwong wrote: | I'm on board with you on not wanting 100% remote anymore. I | used to want to work 100% remote but this pandemic has shown me | that working in any sort of team remotely is _hard_ to get | right (most companies don 't). I've come to the conclusion that | 3-4 days/wk max is viable and can be healthy. | | The problem is there's so much information and communication | that happens implicitly through our day-to-day actions that | when you're remote, you have to make that information explicit. | It's tiring as hell. | | For example, meetings. In person, you can look at a room and | understand some basic relationships-who is talking to whom, who | is laughing, who is avoiding, etc. This gives you valuable | information on the shape of the team and how to navigate and | work best with each other. Turn that into a zoom meeting, | however, and that information either has to be explicitly | pointed out or it is lost. This kind of thing eats up valuable | cycles for information that could have been communicated in a | literal glance. | baron_harkonnen wrote: | Remote meetings work best when they're frequent, short and | small groups. | | Good remote teams have better communication in my experience | because very often "implicit" communication in an office | means you think you communicated something but did not. | | Making all communication explicit is a useful habit to into, | and overall improves everything. | notJim wrote: | > I for one am even more in the no-remote-only-gigs camp given | recent events. | | I don't understand this, why? | | Regarding the rest of your comment, I totally agree. My mom and | sister both work for a large, old-fashioned company, and the | company didn't even let them take their dual monitors home with | them when WFH started. They both had to buy setups out of their | own pocket, and these are not people making tech salaries. | | Really the biggest cost you're leaving off is space though. | It's really preferable to have a dedicated space for an office, | and this is not free. It's one thing for someone who made a | choice to go remote, but for people forced into it, it feels | unfair to me. | | It wouldn't surprise me if in the new world, offices are viewed | as a perk rather than a requirement due to all this. I | personally work remotely for the record, but talking to many | people in my life, it's clear this is not for everyone. | cosmodisk wrote: | >and the company didn't even let them take their dual | monitors home with them when WFH started | | That is such a low life mentality. Not to give two screens | worth $200 to someone who's probably making 10-20 times that | a month. | | What I envisage is super localised hubs,or small office | spaces in residential areas. Small building nicely fitting | into the area and offering local people some level of office | like environment | philjohn wrote: | Exactly - I'm lucky in that I made a deliberate decision to | have a slightly longer commute because it meant a bigger | house and closer to an amazing school my children attend. I'm | fortunate to have a proper office that I can enter at the | start of the work day, and leave at the end - separating my | work and home life. | | Having to work from your lounge, or kitchen, or worse bedroom | makes it much harder to switch off. | bonestamp2 wrote: | > I don't understand this, why? | | As far as I can tell, this seems to be an introvert/extrovert | thing (for the most part). Extroverts miss being around | people they can engage in conversations with, while | introverts love not having extroverts around trying to engage | in conversations with them. I think both camps have valid | needs and right now the extrovert's needs aren't being met to | their satisfaction. | bitbuilder wrote: | >I don't understand this, why? | | My sentiments are similar to OP's, and for me a large part of | my job satisfaction _was_ getting to hang out with really | incredible people all day, getting lunch with those people, | getting afterwork drinks with them, etc. Hanging out on video | chat just isn 't the same. | | Of course, an argument can (and maybe should) be made that | it's smarter to to keep your work focused on the work, and | find your social outlets elsewhere. However, the unfortunate | reality is that for those of us far removed from school and | our home towns, work is where we tend to make our friends. | | On top of that, I just enjoyed the change of scenery in | leaving my apartment in the burbs to go into a nice office | space in the city. Feeling restricted to the same space for | 24 hours a day is driving an unhealthy level of cabin fever | and boredom. For the first time in my life, I envy those with | the big house and a yard. | | Of course that later point would be somewhat mitigated in a | world where I could work out of shared space or the local | coffee shop, so I'm not sure if that's an indictment of | remote work in general for my purposes. | dakiol wrote: | > Feeling restricted to the same space for 24 hours a day | is driving an unhealthy level of cabin fever and boredom. | For the first time in my life, I envy those with the big | house and a yard. | | This is because of corona, not because of working from | home. | webdood90 wrote: | People say this but I don't really see the alternative. I | can't imagine going to a coffee shop to loiter every day. | The reality is I'm gonna be at home in my office, and | that is tiring. | flatline wrote: | I used to work remotely and really disliked it. Not | talking to coworkers and being stuck at home all day were | the two big reasons. I'm right back there now due to the | pandemic, and it's much the same, the evenings and | weekends are somewhat more boring than before but we | still manage to get out and do stuff because the weather | is nice this time of year. | | I think this _could_ be different with a complete | overhaul of corporate culture but I haven 't seen it yet | in 20 years of employment with "teleworking" being an | option at least part of the time. Perhaps remote-first | teams really are different, but you're still stuck at | home all day, or spending time and money going to a | coffee shop and maybe finding a seat+wifi, etc. | draw_down wrote: | Yes, this downside of remote work almost never gets brought up. | I've worked remotely for about 10 years now and have no | interest in going back, but I think people should be clear-eyed | about what's in it for employers. Not so much coffee and | snacks, but office space, desks/monitor/chair, etc. Ethical | employers should be offering stipends for these. | randycupertino wrote: | > the amount of emotion on display when the topic turned to | returning to the office strongly suggests people want to go | back. | | Could also be the most vociferous or those worried about losing | jobs to outsourcing? Also there's morale at play which could be | people wanting to showcase they're all-in for facetime and not | wanting to be the only ones without team spirit. imo people | will vote with their feet re: remote work by not interviewing | or accepting offers at companies that force back to the office. | | Agree there's a nostalgia factor at play and need for ongoing | discussions, I think overall things are going to move towards | greater flexibility and maybe flex days/time etc. | egypturnash wrote: | I just wanna add one thing to this list: | | - Physical space. If you've got a small home without a spare | room to turn into an office, have fun working on the kitchen | table! | briandear wrote: | True, but if you were remote only, you could live in a low | cost place and afford a bigger space. | mynegation wrote: | I could but I just do not want to. This pandemic definitely | stacked the cards against my living preferences | Andrew_nenakhov wrote: | The place is chosen not only for the cost. Some people like | to live near the park, or downtown, because theaters | museums movies bars dancehalls are all there. | Shivetya wrote: | I am more that willing to take on those costs to work from home | forever because I get the freedom of no commute which not only | incurs an obvious cost but puts me at risk each day. | | I also find my costs reduced because now I am no longer eating | out for lunch, let alone because I felt pressure to do so | daily. | | However there are companies that are overly proud of their head | quarters and other real estate and are going to be loathe to | give it up; this includes elite addresses and locations | bradlys wrote: | Many people in big tech hubs don't pay for lunch. Work | provides it. Now, they all have to pay for lunch that they | weren't paying for before because the office is closed. | Sometimes this isn't just lunch - but up to 3 meals a day. | Same is true with transit. They took a company bus or work | paid for public transit. | | Now, people who were living in spaces where they didn't have | a dedicated office space are dying for one. (like myself) | And, unfortunately, the competition for homes with more | bedrooms has skyrocketed. I'm looking at paying $2000 more a | month just so I can get a couple more bedrooms for office | work! Moving away for a year or more isn't a real option | either. | toomuchtodo wrote: | Fringe benefits should always be expected to be transient | (meals, commute transportation), and it isn't wise to | include them in total comp calculations (as they're easier | to do away with than your comp). | bradlys wrote: | >Fringe benefits should always be expected to be | transient (meals, commute transportation), and it isn't | wise to include them in total comp calculations (as | they're easier to do away with than your comp). | | Yet places like Google would argue for them as part of | their TC. The companies that tend to offer these benefits | don't usually get rid of them until they're going out of | business... | z3ncyberpunk wrote: | The companies offering these services are also so few and | far between it's ridiculous to even mention it | toomuchtodo wrote: | It's your job as an employee to not drink the kool aid | and to properly value benefits provided, regardless of | how they're marketed. Cash is king, everything else is | window dressing. | rightbyte wrote: | Sure but it is not just the $ sum but also $/h and | $/sweat and tear. Having eg. parking lots even if you | arrive at 10 aclock is also a big deal. | ckdarby wrote: | I have a hard time relating to your comment. | | Why do you need a couple more bedrooms? | | Can split a bedroom as an office with the other person in | your house. | | If you have kids you can pair them up in the same bedroom | with bunk beds. | | You could spend the money on a Murphy bed that folds up and | turns into a desk. | | I have co-workers who even work from their dining room | table for the time being. | | Moving is always an option every excuse you have just | follow up with, "and...?". | skwb wrote: | There has long been a debate if these free means actually | count as a form of reimbursement (and are therefore | taxable). | | https://www.wsj.com/articles/silicon-valley-cafeterias- | whet-... | | https://www.businessinsider.com/irs-and-free-food-at-tech- | co... | spo81rty wrote: | Or you can move somewhere where the cost of living is 80% | lower...and still work remote. | bradlys wrote: | Until you have to go back to the office whenever that | is... And say goodbye to all of your friends/family. | michaelt wrote: | If my time's worth $50 an hour, it'd have to be a damn good | free lunch or a damn short commute for the free-lunch-for- | unpaid-commute trade to be a good deal. | godzillabrennus wrote: | If tech companies don't adjust for cost of living and you | move you can save money on housing and get more space. | take_a_breath wrote: | Isn't that the point though? If the worker has to move in | order to get more space, the worker is bearing the costs | (literal and opportunity). | progman32 wrote: | @notjim @chosenbreed37 - I chose not to expand because it's | specific to my own situation, but: I found remote work isn't | for me. A selection of reasons (from pre-and-post covid | experience): I find my communication stilted, I really miss | hanging out with my colleagues, online whiteboards aren't the | same, we have beer and board games, aisle conversations are | useful, it's easy to see if it's OK to interrupt someone with a | question in-person, and frankly it's motivating to have people | bustling around working on stuff directly related to your own | work. Half-and-half remote and in-person is probably a good | balance for me. Yes a lot of the above reasons are a) | privileges and b) can be mitigated with good remote work | discipline, but again, it's just my preference. | | > Really the biggest cost you're leaving off is space though. | | 100% agree. Many people are literally working in closets or | worse, if they even can. | | @taurath - "Quarantine Work Is Not Remote Work" good point. | People are learning to support their remote colleagues right | now, whether they intended to or not :) So "normal remote work" | might be even better after this chapter concludes. | toss1 wrote: | Definitely a trade-off, as the costs previously mostly foisted | off on employees were related to commuting to the office (time, | car, parking, public transport, etc.) | | The leading companies would take account of those costs. One | would hope they would also adapt to take acct of home office | costs | | I'm seeing/expecting people will want to go in some, but not | back to 5-days in the office. 2-3 days, when necessary to | really do things together. | | If this reduced office loading prevails, it'll also help | everyone from workers to cities with the misery & costs of | commuting (tho I did read that NPR has lost huge audience due | to loss of commute-time listeners). | take_a_breath wrote: | I've been saying this for months on HN and it hasn't been very | well-received. Maybe such a large percentage were already | remote that it seems obviously better to them? | schwinn140 wrote: | I'm not experiencing this and I would assume anyone employed at | a larger or established company would mirror this. | | I've seen our company quickly react to the reduced office | related costs and have reallocated that to cover employee's | home office needs: internet service, phone, supplies. If you | needed a desk at home, that also was accommodated. | | Being able to take our work computer(s), including dual | monitors, was also immediately available to everyone. | cosmodisk wrote: | We run two office buildings on the same road: we went to the | main one to collect all the IT equipment,pack it up and put it | in the other,smaller office. We used to run fully in house. | Yes,some people do want to go back to the office but the main | reasons are: we were all stuck at home for months,so people do | want to regain some sort of normality. Some have difficulties | at home,so going to the office is better. Me personally? I run | a 10 people team that will be half that size in a few days. I | live in a 1 bed flat,so writing unit tests and dealing with | dodgy suppliers,while Peppa Pig is blasting in the background | can be challenging. However,I don't want to spend 3h on | commuting daily.Screw that. The desk cost was about PS3K a | year,so I'm sure there will be some negotiation space to get | something arranged for WFH. | chosenbreed37 wrote: | > I run a 10 people team that will be half that size in a few | days. | | Is this something that is coming about as a result of the | pandemic? | cosmodisk wrote: | We were very reliant on consumer credit, while selling | services almost twice the going price,which has now gone,so | the sales won't be anywhere near of what it used to be. | scarface74 wrote: | I worked at a job I loved pre-Covid - great coworkers, freedom | to tinker, a large amount of autonomy, admin access to our AWS | account so I didn't have to worry about the infrastructure | gatekeepers (I was hired as the de facto "cloud architect"), | etc. | | But, I couldn't stand the loud open office. One of the reasons | I changed jobs was because there was talk about us coming back | into the office by the end of June. | | My job (for a FAANG) now was always designed to be fully remote | and I couldn't be happier. I've job hopped for the last decade, | but there isn't a dollar amount that would make me go back into | the office. | aresant wrote: | Office buildings are a $2,500,000,000,000 asset class in the USA | alone. | | Throw in retail and you're at >$5 trillion of value. | | And the market is in total chaos due to COVID-19, fortunes are | going to be made and lost on a ridiculous scale over the next | decade as institutional investors reposition their trillions of | dollars of equity in this market. | | Institutional investors rely on commercial real estate as it's | one of the only asset classes at SCALE that can: | | (a) Generate cash flow | | (b) Is asset backed | | (c) Is highly leverageable w/relatively low default risk (debt) | | As a result the world's largest institutional funds - pensions, | sovereign wealth, insurance companies, etc typically invest a | large allocation of their overall funds (10 - 25%) in the CRE | class. | | This lets them pay their current liabilities - teacher pensions, | public services, insurance coupons, etc - with cash, while also | generating longer term IRR returns on the appreciating assets to | cover ever expanding liabilities. | | For generations of institutional wealth managers retail and | office space were the #2 and #3 largest overall allocations of | their real estate portfolios (1) | | Part of this is due to the scale in office / retail - those two | product types represent ~$5 trillion in asset value and are only | outstripped by multifamily ($2.9t) in scale. (2) | | But as both office and retail have been slipping for the past | decade institutional managers had slowly begun to reposition and | reallocate to other sectors while keeping a toe in. | | But as it's done elsewhere COVID-19's arrival has massively | pulled trends in CRE forward by probably a decade with regard to | the reallocation. | | As a result what most CRE investment pros are expecting a | significant increase in valuation multiples across alternative | CRE asset classes including multifamily, self storage, | industrial, etc. | | What's terrifying about the idea of massive winners & losers in | the space is the potential further erosion of returns on | institutional investors, who are typically already well behind | investment targets to maintain their expanding liabilities. | | Great resource / primer here if you're interested - (1) | https://www.leggmason.com/en-us/insights/investment-insights... | | (2) https://www.reit.com/data-research/research/nareit- | research/... | birdyrooster wrote: | The reason I won't be coming back to the office is because my | managers love not having to come in anymore. It's that simple. | supergeek133 wrote: | I'm still amazed the fight seems to be "everyone works from home" | or "everyone works from the office". | | I've been fairly productive since we all started full-time from | home in March. However I prefer working at the office. As time | has gone on I've found myself losing routine. Either working | sporadically through the day or longer hours in general. | | Being somewhere does a better job for me of time-boxing work. | | That being said, I also have my work and personal machine in the | same room. So now I'm spending most of my time in one room! I'm | working to rectify that situation. | jacquesm wrote: | If there is one business I would not want to be in right now it | is commercial real estate. I'll be letting go of 2/3rds of our | office space at the end of this year and I may even get rid of | all of it depending on how things develop. | | With some luck this will have a nice downward effect on house | prices in and around Amsterdam, where plenty of companies have | converted houses to offices. | oakfr wrote: | Companies _think_ that remote work works but they fail to realize | that most of what happened over the past few months was based on | prior momentum built inside the office they are carelessly | ditching. | triceratops wrote: | Couldn't you bring people together once a quarter or bi-yearly? | Book a nice villa someplace exotic for a couple of weeks, get | all the planning and coordination out of the way, give everyone | the last few days off with families invited. | bradlys wrote: | Would that really be any cheaper for the business than just | renting an office?? Flying people to nice destinations and | putting them in expensive hotels along with their families is | $$$. | triceratops wrote: | Almost certainly. Toptal used to do it. I'm not sure if | they still do. | helltone wrote: | How would this work when both parents work different jobs and | children in school? | triceratops wrote: | Same way they take vacations. The parent working remote has | more flexibility to take on childcare responsibilities the | rest of the year, so they can probably work something out | together. | greenyoda wrote: | Going "someplace exotic" may be great for some people, but if | you have responsibilities such as being the caregiver for an | aging parent, being forced to be away from home for a couple | of days or weeks can be a big problem. | triceratops wrote: | True. OTOH, and not to invalidate anyone's experiences, but | people shouldering such responsibilities typically have | help already (either paid or other family). Otherwise they | couldn't do their current job. They also, presumably, have | plans/protocols for when they need to take a vacation or | break. Unless they were otherwise spending all their free | time on caregiving, which isn't sustainable or healthy. | They could potentially use those same measures when it's | offsite time and even be given some makeup time off later. | | They could also get an exception and attend the working | sessions remotely. But there's a chance that could lead to | fewer opportunities for advancement for them, because they | weren't there. Which sucks. It's not an ideal situation. | | BTW, lots of enterprise sales companies already do annual | "sales kickoff" events where they fly all their salespeople | globally to a single place. It's not unprecedented. | sokoloff wrote: | > Unless they were otherwise spending all their free time | on caregiving | | You're not far off the description of parents of young | and early school-age children. Kids are in school/daycare | for part of the day, then at home, needing dinner, care, | etc. | triceratops wrote: | That's different from caring for elderly family members. | Parents with young families (maybe not those with | newborns) can and do take vacations and travel. They also | often have paid help even in their non-work hours e.g. | babysitters or nannies. | stormbeard wrote: | This is resolved by going somewhere within an hour of the | office location. It's a good idea, but not everyone wants | to be forced into traveling for work. | jefftk wrote: | I worked at a company that did this: big in person retreats, | once or twice a quarter. I've now been working remotely due | to covid about as long as I worked at that company before I | was laid off. I still feel much closer and more in sync with | my current coworkers than I did to my coworkers at the remote | company. | devmunchies wrote: | also most people on your team has met in person, so there's | that momentum too. It's a complete different vibe when | teleconferencing with people you've met several times than with | those you have not. | | And I don't think a quarterly on-site is enough. | sjtindell wrote: | I like this point, we've had a lot of success going remote but | also haven't been through multiple rounds of planning out the | next quarters yet, everything was in place. | huy-nguyen wrote: | Will this trend revive the fortune of WeWork? We can have a | future where teams within a company decide on "core days" where | everyone is in the office but WFH the rest of the week and the | company can pay for a variable number of office spaces depending | on the week day. WeWork can become the cloud but for office | spaces. | [deleted] | paul_f wrote: | The general idea of WeWork, but not that business model | chosenbreed37 wrote: | I think there was always a viable business in WeWork. Just not | with all the excesses and crazy valuations. But prior to the | current pandemic it certainly meet a need. Granted they were | not the only ones offering the same service. But even that in | itself would suggest that with the proper management it would | be successful operation. | birdyrooster wrote: | WeWork should make studio space for YouTubers that has | ambient noise dampening and good facilities for lighting and | rigging. ___________________________________________________________________ (page generated 2020-07-23 23:00 UTC)