WFH's impact on the office sector- A data point
Got some intel that one of two GSA's will have large portion of their workforce come to the office only 2 days a week. It is my understanding it will be the same 2 days for everybody and this is being seen as a permanent offering and not a trial run. And this applies to CRE lending folks as well.
This got me thinking. The GSA's are not tech companies where WFH is being embraced. GSA's and similar organizations are the embodiment of corporate inertia. If they are embracing WFH and only requiring people to come to the office 2 days (which imo is the bare minimum for the "hybrid" work model), it is pretty radical. Office as an asset class is not going anywhere but a reduction (not total elimination) in need for office space is going to have an impact across the board. If anyone dialed into the Hines lender update call yesterday, it was interesting that Omar Thowfeek mentioned that there was a point not long ago that retail was the hot asset class like how industrial is now and those two asset classes have completely flipped today. Wonder how the office sector will evolve. Personally I think you just dont come to the office for 8-12 hours a day and crank a spreadsheet . You can do that just fine at home. However, you also just dont be a remote only company depending on your field. You still come to the office a day or two every week but it has to be productive- R&D, strategy, etc. A fine balance there will be helpful I think.