[quote]Most large companies sensed something like this coming, with large percentages of employees already working from home near- to full-time. Those that prepared for the eventuality handled the transition well. Those that did not are probably itching to get their folks back at their desks.
Two years ago my company gave its full-time (or nearly) WFH employees a choice: move to full-time office work or accept a severance package. They offered a pitiful relocation allowance for those not near an office. With about 10-15% of the workforce affected, they targeted a group of employees whose years of tenure and proven responsibility had allowed them to forge individual arrangements to work from home and, in some cases, to relocate far from the office with which their business group was associated. This was all done in the name of "collaboration," but was simply a cover for cost-trimming.
With Covid, my firm shifted easily to everyone working from home (only a year before everyone had done it regularly at least one day a week.) This was an emergency situation and all would return to normal they said, yet not even half a year in, the message changed. The easy switch and unexpected substantial profits during this period put to bed all the past talk of "collaboration." Now the idea is that offices will re-open, probably not at mid-year, but late 2021 or early i2022. Where office leases have come due for renewal they are being let go. Working from home full-time will be permitted again, no one will be expected to work not more a more than four days in office week, and most people will be encouraged to adapt a work week of 4 days at home and 1 day in office. The company now sees profits in letting leases lapse and reducing leased space substantially.
My company's roundabout turnaround will be shared by many: maintaining some sort of office presence but reducing that in time as office space lease renewals arise and some better sense emerges of who will be using leased space, for what purpose, and on what schedule -- figuring out what works.
Going back to the Marissa Mayer scheme of "asses in desk chairs in a proper office, goddamnit" just doesn't make sense now, not for a lot of types of work. To what extent companies need offices and for what purposes will be a while in the sorting out. Executives who want to continue to live in Switzerland or NYC like not having to make a big show of appearing to have a working office at the HQ in Sheboygan. People at the office end of the pay scale like that they can live in Sheboygan with its cost of living at 80.7 (median home cost $127K) instead of NYC with its cost of living at 187.2 (median home cost $680.5K)
As for cities and suburbs? In cities like NYC and Chicago and London with a lot of historic buildings in prime center city locations that these will be easy conversions to luxury housing, the spaces more attractive to buyers than a big International Style glass tower with a deep core that doesn't lend itself to housing conversion. Newer buildings will take on more tenants and smaller spaces as corporations downsize their office building presence and rethink spaces more for meetings and special activities rather than everyday pod farm life. In the long term, I think it's the suburbs that will lose out. Their appeal as cheaper than the city yet reasonably accessible will plummet as people seek bigger, better houses in farther out, no longer tied to 5 days a week in the city center. Suburbanites will lean toward the exurburbs and distant small communites or to city centers. Inner cities will turn more on amenities that support residents than white collar workers trooping in by trains: restaurants and cafes geared to residents not the lunch crowd, more prepared food options as eating at home alternatives to cooking at home. It might eventually be a boon of sorts to artists and art galleries, opening up spaces at lower rents in the city centers -- as cities reinvent themselves as destinations for arts and entertainment.