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| Economy |
| Tech companies are ending leases and consolidating offices as remote work is here to stay |
| 2020-07-15 |
| h/t Instapundit [CNBC] - On a Saturday in April, several executives from SoundCommerce rented a U-Haul, drove it to their office in Seattle and loaded up the truck with stand-up desks, 48-inch monitors and various other gadgets and personal belongings. For two days, they traversed town, dropping the items off at employees’ houses and apartments. With the coronavirus forcing non-essential employees to shelter in place, it had been weeks since any the start-up’s 20 or so staffers had worked at the office. It was clear they wouldn’t be going back. The lease expires July 31, and SoundCommerce CEO Eric Best said the company did not extend its contract. ...In the tech hubs of Seattle, Silicon Valley, New York and elsewhere, many CEOs are coming to the same conclusion — real estate is not a worthwhile expense. Start-ups that never intended to be fully distributed are letting leases end or looking for ways to get out of longer deals, while bigger employers are closing facilities, consolidating space and exploring ways to provide workers with flexible arrangements and options closer to home to avoid long commutes. ...Facebook, Twitter, Okta and Box are among the tech companies that have announced a more permanent shift to a hybrid approach. Many others are likely to follow as extended school closures or shortened days make remote options essential. Officials in Los Angeles and San Diego announced on Monday that schools will start online-only in the fall. |
| Posted by:g(r)omgoru |
| #2 Next stop: remote work from non-US places. So, empty office spaces along with out-of-work employees to due out-sourcing. |
| Posted by: Clem 2020-07-15 11:51 |
| #1 This is interesting, I want to see how this play out in the real estate markets and the effect on rents. |
| Posted by: Seeking Cure For Ignorance 2020-07-15 11:49 |