https://archive.is/2022.02.14-202112/https://www.economist.com/finance-and-economics/the-true-cost-of-empty-offices/21807703
Rather than lowering rents, landlords are offering more freebies than ever to retain tenants or attract new ones. In Manhattan, cash gifts for tenants—typically used for kitting out new office space—have more than doubled since 2016. Across America, the average number of rent-free months has risen to its highest since 2013. Some property developers remain optimistic, betting that demand for office space will eventually bounce back. But with each new variant of covid-19, plans for a wide-scale return to the office have been delayed, and delayed again. And changing patterns of attendance look set to reduce the overall demand for space.
Landlords will add a keurig to the lobby and act like they're building a community
I live in a pretty big apartment complex spread out over four buildings.
All the ground floor units were designated commercial when the complex was created.
The landlord's soon found they couldn't rent out the ground floor units at the rate they hoped.
Instead of lowering their asking price for rent, they have spent the past 3 years lobbying our buildings associations to allow the empty ground floor units to be used for residential purposes (and failing).
They have used all sorts of dirty tricks, including pamphlets under the door of residential units claiming levies will increase if their motion doesn't pass.
They would literally rather make no money, than allow someone to rent their units for less than what they erroneously believe they are worth.
"the market is the best arbiter of prices, unless the market calls up prices that mildly inconvenience me in my attempt to get rich off other people's work :porky-happy: "
They got a loan with that rent price on it. If they lower the rent, they'd have to pay more of the loan back. So those rents are never, ever coming down.
Rather than lowering rents
They can't. I mean, they literally can't lower rents. They are never, ever coming down. Ever. Not even after a 10 year depression where the building sits empty. "Well they'd rather lower the rent and get a tenant than keep the rent too high and get nothing." That's where you're wrong, bucko.
Once upon a time, this was true. But today, there are a whole host of financial instruments that base themselves on the rent price. Lower the rent, and a chain reaction of negative events occurs. Property owners are leveraged up to the hilt. They borrow as much as they can against their properties to invest in other ventures. If the rent goes down, they'd have to actually pay for their properties, and that must never be allowed to happen.
Every day, Marx's articulation of the Tendency of the Rate of Profit to Fall makes him look more and more like he was a time traveler who just happened to see how capitalism played out then went to the 19th century to write about it.
honestly that sometimes makes the most sense to me because its hard to believe one man could have so much natural insight.
That would be a cool sci-fi story. Something like 11/22/63 but in reverse, it would mostly be historical fiction about Marx's drunken shenanigans with a backdrop of his desperate attempt (writing the manifesto and Capital etc) to save the world from the future he came from, only to ultimately have us wind up back where we are now.
part of it is because he lived before everyone was fully transformed into a liberal subject
I cover this stuff in the press (boo hiss) and you're 100% right. this is a battle to the death for office owners, and their banks. No one could handle having to actually pay for all of this real estate.
What's it like being part of a group of socially harmful professional liars? Does it hurt in your soul? Or is the money good enough that your soul died some time ago and all you feel is $$$$?
it often sucks, but I try to focus on highlighting corporate corruption and the societal effects of capitalism, which helps (even if it also helps with the whole narrative of crony capitalism). I also do a lot with our union which helps to fight back against the most $$$$ seeking qualities of our management. tbh tho I could have made a lot more money doing much more societally harmful work. so idk... people are right to hate most journalists though.
No one could handle having to actually pay for all of this real estate.
:mao-aggro-shining:
We actually have a problem here that there are way too many giant vacant offices just occupying space where people could live. To the point where office space is dirt cheap, but housing is insanely expensive. But this has even been a problem before covid.
There are a dozen huge homes (like 4+ bedrooms) going for $1200/month in my area while a studio apartment starts at $1600 because they're zoned commercial and the landlord took out some of the bathrooms.
office space is dirt cheap, but housing is insanely expensive
E F F I C I E N C Y
Watching homeless people camped out in front of a derelict building in the winter (rather than inside of it) :honk-enraged:
Worked from home since 2015.
I'd rather eat a pile of glass shards than work in an office again.
It's definitely a mixed bag IMO. Especially for someone like me who started a new WFH job during the pandemic. It's super hard to learn my job when I'm not around the people I work with. And I actually like this job. There's also relationship issues WFH can exacerbate.
But on the whole, WFH is good.
I don't get get wanting to work in the office, but it's 10,000% obvious to everyone now that "we can't do remote" was a fucking lie so just let people pick the one that suits them.
Yeah, even traditional industries like advertising worked fine from home during the pandemic.
The idea we need to be face-to-face to be productive is ludicrous.
But with each new variant of covid-19, plans for a wide-scale return to the office have been delayed, and delayed again.
:covid-cool: :wholesome:
the true cost is having even less of an excuse to house the homeless
