Today’s WSJ talks about employees’ reluctance to return to the office since Labor Day. From the article: “Attendance is up sharply from an April low of less than 15%, which largely consisted of building-maintenance & essential workers. The office return rate climbed steadily during the summer & early fall but has flattened out after reaching a high point of 27% in mid-October. The rate for last week was down even more sharply than in previous weeks but reflected the Thanksgiving holiday. “There’s a huge headwind against company executives to strongly push their employee bases to come back to work,” said Douglas Linde, president of big office owner Boston Properties Inc.”
Foot traffic to a building owner is like counting cards at a casino. The data that is released & captured tells a meaningful story to bankers regarding the financing of an asset. In plain English, the person with the best data wins. Which boosts the bottom line by lowering capital charges.
The Journal: “Office holdings have long been a cornerstone investment for major real-estate funds for their steady & reliable income. But values are falling sharply as a growing number of tenants dump sublease space on the market or demand lower rents from their landlords when their leases expire.”