The Price of Remote Work: NYC’s $12B loss - Company Forensics
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- Опубліковано 13 вер 2023
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As Remote Work gains momentum, you will find that there are a lot of changing patterns within the city. Fridays are much emptier, local businesses feel the brunt of fewer people buying food and drinks, and a delicate financial balance could topple over in no time.
Most articles agree. Office spaces in NYC reached a critical point in January 2023, when they were at half occupancy, and it's a number that's still sticking through. The implications are massive.
Check out this video to learn how Remote Work has forever transformed New York City.
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Caya
Twitter: / cayahere
LinkedIn: / caya
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Would you go back to the office to save the economy? 🦸💰
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I bet this guy won't let his employees work remotely
No because that's not how capitalism works.
You're right, but why not mentioning the fact that majority of the building's owner (corporation or small private landlord) were sitting on a gold mine for decades? Same for the majority of restaurants. The problem started 100 years ago when people decided to pay skyrocketing prices for square meter in the big cities and no one tried to stop this
I will have to give this video a thumbs down only for mentioning AG#!@!!! otherwise it would be three thumbs up as usual for any Slidebean video. In the well fed and well supplied western world noone has to resort to such trash. Getting malnutritioned is basically impossible unless you desperately stick to a bad diet based on little more than potato chips. That stuff is just marketing and scam. If you're unhappy with yourself - your shape, your inability to put a salad leaf on a sandwich - there you go, punish yourself with some disgustingly green goo.
"The economy" measures the wealth of rich people, not working people. It also relies on constant growth in a finite world. Instead of "saving" what we know as "the economy", how about an economic model that benefits everyone instead of a handful of people?
As a Chicagoan I don’t give a fuck about this “butterfly effect.” It’s not my responsibility to keep the local donut shop in business. It’s not my responsibility to make sure that the downtown boutique stays in business. I’m an auditor. No one wants to see me, ever. Let me work from home where I can invest in my local community.
Additionally, that $4600 a year that was spent eating out all went to inflation. Things cost a LOT more, and raises haven’t kept up. Going back into the office regularly would be a paycut for a lot of folks.
say it louder for the people in the back 👏
Agreed, dude is trying to convince people to go back to the office. Idgaf about any of them 😂… I’ll freelance and stay remote if I have to
As a Chicagoan I approve. They need to pivot to keep up with the needs of the people. This is a lie. We are still buying coffee, and eating lunch. It’s just not where they want us to. If i save $5K a year I’m still stimulating the economy on things like better grocery, fun travel, my retirement, self care, seeing a therapist.. things that make ME HAPPY. They want us to fund THEIR happiness at the expense of our own.
It’s a free market until it starts affecting the status quo. Traditional models are being disrupted and we shouldn’t go back in order to help keep everyone in business. Fact is that innovation drives change, so either it is time for NY, corporate landlords, and all the small businesses in between, to evolve or it’s time for them to go out of business. Whining about the perils of wfh won’t accomplish anything.
@@marcl7307 1000% agree
Landlords and the upper management in these big companies are always claiming that they deserve their insane profits because they "take on the risk" of buying up all the property. Well, here's the risk they took on. Not my job as a worker or rent payer to subsidize that or bail them out 🤷🏿♀️
I think you missed the point that yes they will lose money but this will also impact the average workear pretty badly. Similar to the crash in 2007.
@@alonsonicWorse than three jobs doesn't pay rent anymore, so I'm already homeless, bad though?
We're already there. And greedy rental practices are one of the many things that got us here.
Every time we're in a recession we clamor to save the top or the well off, when in reality we need to be making a real net for everyone at the bottom. So there's a baseline that never gets lost. Whether things are good or bad, economically.
@@alonsonicno it won’t because the average person will be consuming way less and has adapted to do so when working from home. No frivolous spending on overpriced bagels or a new outfit to impress people at work. People are realizing they can do the job in a worn out 10 year old t-shirt and shorts with holes when working from home!
@@alonsonic I'ts about benefiting me. I'm far more versatile than a Corp, municipality, or all the other negatives of central planning.
Build more homes instead of office buildings
This video is about NYC.
Came here to say the same kinda thing!
It’s not profitable
@@abdulsegsNow that office buildings are so much less valuable it is. It's the only profitable avenue left.
Considering the housing crisis we're in, I think the government needs to tear down some of these office buildings and replace them with affordable housing, no matter how expensive it is.
I’m happy to hear landlords are suffering and I can’t apologize
I'm not a landlord so I have no real stake in this- but I want to believe most _landlords_ aren't evil. Buying real estate to rent out is quite a 'normal' investment. It puzzles me how much they've been demonized.
- Caya
imo there are different kinds of landlords. corporate landlords can suffer no problem, but small business individuals who treat their tenants great are a different story. in los angeles it's mostly corporate big business who just care about $. Definitely not everywhere. A landlord's job is to make sure things are function and the building is safe. Yet i see all too often this not being the case and they just sit back and watch the rent money come in. A friend of mine literally had her apartment explode because of a faulty electric box (well the box exploded and lit her apartment on fire taking out her bedroom and kitchen, she's fine though). She works from home as a music streamer. I had another friend who's landlord took forever to handle broken internet issues from bad cables (that were the landlords fault), to roaches in the apartment that took months to get someone to take care of (at first blaming my friend for it).
By contrast i know landlords who constantly fix every little item that doesn't even need fixing because everything needs to look new and perfect and of course they raise the rent accordingly (these are often the corporate peeps). At the end of the day landlords are people and human. there are some good ones and bad ones, but increasingly it is seen as an investment (as in number must go up) or business vs people's lives being effected by these owner's decision. rent shouldnt' have to go up 10%+ every year just because they can earn more money without providing any real value while also removing amenities (happened to me).
I also know some people who will develop a property without raising rent because long term investment is everything or only substantially raise rent to "market value" when tenants move out.
@@slidebean Caya, I think you're a smart and compassionate guy. Have you read about how NYC landlords are purposely keeping some 13,000 apartments vacant to evade/undermine rent control measures? They are unfairly manipulating the market. The housing market in New York has become unlivable for the average worker. Owning has become even more impossible. It's no wonder most Americans are fed up with greedy people who make it harder for all of us.
Controlling the natural order of things for personal gain, willingly keeping people out of homes just so select people can impose more rent? Karma is a Bitch ain’t it lol, I’m happy & watching this cascade with popcorn.
They've demonised themselves through their treatment of tenants.
Disappointed with the analysis here. Most jobs are set up to make other people rich and so "efficiency" often works against the employee, making them perpetually expendable.
The one efficiency measure (remote work) which actually benefits the worker is being blamed for a possible 2009 replay. You can't look at corporate behavior, even by individuals who can afford to be corporate-like, through the eyes of your entrepreneurial experience. They don't have your ethics and they don't share your worldview (at least the one you reveal on your videos). Most times that perspective helps your analysis. Here it hurts.
Manhattan real estate is a cesspool of corruption, vice, and exploitation...the skyline is cluttered with vanity projects.
The pain that the collapse of some small part of that system (in NYC or other big cities with huge inequality and homeless populations) shows how distorted the incentives within our version of capitalism have become. Some smaller players are being hurt but they should not be used as polemical human shields. Their presence does not redeem the system as a whole. Hubris will cause a collapse...not remote work.
These buildings were built for ego and for what was perceived as an ATM (Manhattan real estate) at the time of construction...not for the small businesses who happen to capture foot traffic on the way...
Love your content, respect your analysis, and understand your interests...but I don't agree with your core observations here.
Same.
Well said
based analysis.
I ended up leaving my last employer because they were going to force us to go back to the office 4 days out of the week. Luckily I was able to find a new job that is 100% remote. Going into the office in 2023 is no longer necessary.
Market value has been inflated and overpriced. If housing or office space were lower, a lot of those empty spaces would be occupied again, but it can also affect the profit or mortgage payments on the other side. Maybe renegotiate the mortgage conditions. There's definitely a bubble in most cities like NY.
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I still can't wrap my head around the fact that the so-called 4-5K extra money saved per head annually somehow stays in a vacuum and doesn't find its way to flow back into the actual economy wether it be that extra holiday or the purchase of stuff for home or in the form of better/healthier groceries and stuffs etc. Just doesn't add up. How is any of these money / value being lost ?? Just distributed better on better things where the people have a better control on their allocation.
Urban economy generally rely on market size to support its stability. More consumers generally encourage more competitive market, while also provide higher income for local government (whether they used it to improve public service is another story). With advent of WFH, or during urban decay in general, those extra money get "dispersed" from previously concentrated area towards wider local economies.
From perspective of individuals, it IS beneficial to have extra money to spend on improving quality of life. But for the economy as a whole, the negative effect felt by urban area is multiplied by scale of reduction, while the positive effect for each local economy is neutered by population distribution.
Imagine two separate case, 1000 people spend 1k each in one central region vs 1000 people spend 2k each in 5 separate regions. Despite spending twice as much, the 2nd group will less likely to have better service (both public and private) due to smaller size of the economy on each region.
@@bepamungkas ahh, I see, thanks
Who cares that offices are empty 😂 commercial real estate has become a bad investment, so what? Convert those offices in apartments, I don’t see why employees should “bail out” commercial real estate
Remote work isn't only about not commuting (which is great) but also accessing to jobs that normaly were only available in mainstream cities like NYC. remote work has democratized labor.
Working remote was a blessing for me. I'm in no mood of being sorry for them.
Thats good, NYC loss is a smaller town win. Escaping the city allows you to budget a bigger family and healthier work-life balance. Let the economy correct itself.
Facts. It’s also a nightmare. I’m in FL and these darn New Yorkers landed here, caused overcrowding and drove up the cost of living.
@@tinamarie8061good luck with that. Just like non New Yorkers drove up the price of our living by paying insane prices and making it unaffordable, other states are getting the reverse. So you’re welcome.
Just convert offices into normal living apartments and problem solved. The reason why people prefer to work remotely is because real estate prices in big cities are crazy!!! Having Starbucks 2 minute walk from home is not worth additional 300.000$ debt
Well said!
Exactly this!
The conversion is not that straightforward. In simple terms an office floor can be designed to have 2 shared bathrooms and 2 shared kitchen areas. If you convert then each apartment needs it's own bathroom and kitchen.....a whole different pluming exercise altogether 😅 apartments also need windows for some rooms wheres offices you can have one big window for the open work area
Underrated comment by @william_9944.
This is a good video on the topic: ua-cam.com/video/2BOdJadZflw/v-deo.html
@@william_8844in India there are places where 6-8 people share a single room + kitchen & a single bathroom. There is an old Tamil proverb that translates to : Jackfruit will grow even on the roots of the tree if it has the will to do so.
Considering the housing crisis we're in, I think the government needs to tear down some of these office buildings and replace them with affordable housing, no matter how expensive it is.
You can’t tear down buildings in nyc without being exorbitantly expensive. It would be cheaper to keep them empty to to spend 10x on tearing it down
@@SaceedAbul This video has already explained the dangers of keeping a building empty in hopes of people using it again, instead of tearing it down. There's a huge price to pay on both sides.
However, I think affordable housing is still the better choice, since it provides a benefit that people actually want, and is more likely to recuperate it's costs down the road.
@@SaceedAbuluse old planes
I understand the problem the video is trying to expose but i gotta tell you, life working from home is awesome and it is going to take more than a few billionaires crying about some empty office spaces in Manhattan to get me to come back to the office.
Imagine asking a homeless person what to do with all the vacant office space, they might have some ideas
That sounds a bit utopic to me, sorry.
- Caya
@@slidebeanidk rick that just sounds like slavery with extra steps.
Yeah but having normal people actually living in downtown again would better serve small businesses there than an office commuter ever could
Most homeless folks issue is also drug related. They’d die without support
It's the continuing evolution of cities and society. Like the transition from farms to cities during the industrial revolution changed everything about our society, this is also going to change the way our society is structured. It's also 15-20 years overdue - the tech has existed for this for awhile now. I have little sympathy for corporations and wealthy individuals that couldn't/wouldn't see this coming. The workers and small business owners I feel sorry for but getting the short end of the stick is kind of "business-as-usual" for us. I certainly appreciate your commentary and insight on tech and business social ramifications. It's by far the best part of the Slide Bean channel!
WONT SOMEONE THINK OF THE SUBWAY RATS
rat 🐀 🐁 🐭 no food
This!
- Caya
I think what you meant to say is "As a founder and a company owner my corporate real-estate portfolio is suffering because none of you want to come to work into my office."
Don't blame workers for not wanting to work in the office. Times are changing, work is evolving in a direction that benefits the worker. Don't try to persuade them that they are wrong.
If the office was so gloriously good, like all of the founders are trying to persuade us that it is, then why nobody wants to go back?
The office is objectively better for team work. Still ... There is a housing crisis due mainly to the commute city model. Maybe it's good that stone owners loose a bit of money so that the zoning can be updated and available buildings repurposed.
If founders (in particular, tech founders) really wanted workers to feel the value of in-office work, they should offer more equity, or better terms for equity
LOL. 'My corporate real estate portfolio'. Wish I had the net worth you guys think I have.
- Caya
Teamwork doesn't happen in the office either, it just feels better for extroverts.
@@francisboterothis. The office is for extroverts. Let them have it. I'll be 10x more productive remote
WOW - “Not going to talk about that” in regards to remote work?!
You have to be paddling - to be on the next wave… of change.
Remote work is in infancy - the technology only JUST achieved ability to support everyone remote/at home when the demand came. Think about that… thats the most amazing part.
I am biased - I have worked remote and managed remote teams for 20 years now and my career is in remote tech. I have been destroying the office & cubes for 20 years.
The real problem is that companies and people invested heavily into things that are not future proof.
And this is on them.
It might have ripple effects on others industries but the cat is out of the box.
Office work is joining horseback riding and handwriting letters and there is nothing to stop that on the long term.
Precisely. I completely agree with you
Yup. 💯
I'm all about shifting to fully remote work. Commuting sucks. I don't buy lunch anyway. It seems like a better deal for me to live where rent is still more manageable, save money, and have a job that pays me enough. I'm from NYC and one of the reasons I left was the rent. The MTA is atrocious. There's really no soul left in nyc. The energy is low and heavy, barely hanging on to life.
Louis Rossman has been covering the degeneracy of NYC real estate and just NYC in general, and issues tangential to it, for many years. I have absolutely no idea how someone can "love" living in a place like NYC.
I also had no idea that, so many people in NYC could afford 5 grand a month in RENT. Using the 30/80 rule of thumb, that means what....all those people are making 5 figures a month ?
Wild.
love that one channel catchphrase from back in the day- It's Not Lying, It's Commercial Real Estate
Bro I live in a 200 sq metre house with 3 friends. It has 4 bedrooms and two toilets and two living rooms. We pay 2500 dollars a month. And that is in Oslo. I already live in one of the most expensive places on earth, but NY takes the cake.
Well loads of that office space isn't owned mortage by banks, its money by companies like Blackrock.. This is the economy at work, and true to form, if things go bad for big money, they turn socialist real fast, if it goes bad for the little man, well that is just your fault.. The fault of big money was again to think buildings are an always appreciating asset, they have to take that 40% cut (how many years of profit was that, 10 years back in time?), and with a 40% rent cut most of those small businesses will do fine.
The threatening with a crisis like in 2008 is a tad daft, all big banks have to show they can take this kind of hit. This again will hit big money with nullified obligations. obligations they got a substantial intrest on precisely because of this risk.
What New York needs to do is put in place protections for the smaller businesses so they do not increase the rents to cover their losses, but lower it to market value.
Entrepreneurship is risky. Great entrepreneurs learn to ride the ride. I don't have to suffer because you want to make more money.
At the end of the day everyone is trying to make more money. The markets shift.
You’re missing the fundamental difference vs 2008 housing crisis. The latter was caused by subprime lending to those without the means to pay. Office buildings are not in the same situation and are not a systemic risk
And let's not forget the corrupt rating companies
Property owners are represented here as some kind of entrepreneurs. Well, even if that the case (though very debatable), it's their responsibility to divertsify, both in real, material pocessions and in REITs. Those investors (calling them entrepreneurs in my view is misleading) who followed the portfolio theory and diversified at least between two subclasses of assets - commercial and residential properties - fare relatively well. Why would anyone be compassionate to some investors who were not mindful of risks?
My parents are property owners and they are NOT entrepreneurs. They just passively collect rent as long they have tenants and provide some services when needed but there is nothing entrepreneurial about being a landlord nor does it require much innovation which entrepreneurship likes to gloat about!
London is like this too, in addition to a lot of independent cafes and restaurants closing, many are operating with skeleton staff to cut costs, operating at reduced hours too, and so (anecdotally at least) the customer service in a lot of places has been lowered. One thing that is really griding me is at a lot of cafes even when you dine in they give you the food and drink in disposable stuff because they don't have staff washing the crockery - so you really start wondering why bother paying £10 for a coffee and pastry when the experience of going out has been lowered so much.
There is a lot of money in both commercial real-estate that's used to basically launder money, use as loan collateral, and infalate company asset prices. If commercial real-estate exposeses bad businesses risk for MANY companies hence the pressure to force in-office to keep the facade of 'valuable real-estate'. Companies are afraid of their house of cards falling and exposing their creative lending and tax evasion.
Finally people can save money
I see only benefits with NY competing against Boston, Detroit and Albuquerque for companies and talent.
Work is not friends for many of us and, thus, not a place for useful socializing. The way US employment has changed since the mid-20th century has taught many of us that lesson: were disposable and replaceable to employers and claims like "we're family" are all about getting employees to disbelieve the reality of 21st century employment
I'm not convinced that any mixed model is really sustainable because simultaneously supporting on-premise and remote work requires a lot of careful work to make sure the remote workers are sufficiently included in work communication. This was a major stumbling block before the pandemic.
Being in the server side of IT work I go strongly for "you can 8-5 in the office or you can have flexibility to handle urgent and emergency issues during the hours when I'm not in the office but I'm not doing both."
“if a small business can’t pay rent, the landlord has 2 choices: you can kick them out, or you can cut them some slack.”
no shiat, my para-social friend. and no shade at slidebeam, i am a fan. but the whining like, "ya can't stay home in ya pajamas" and the pounding on the table that large tech companies are now doing is insulting. look, if companies want to renegotiate a workers wages--I know you are saving $5k a year, so you can keep being remote and you will be paid $5k less--might seem heartless, but... (don't let employers know, working remote is worth waaay more than $5k) otherwise this is exactly like asking for corporate welfare.
when we couldn't pay our mortgages, we lost our houses. the roofs over our head. maslows first and second levels on the hierarchy of needs. monetary investment is what, like #4? so, some perspective from all sides would be appreciated. ... and mandatory 60 hours a day in the office can have a nice long talk with my collection of canes, only some of them have swords.
I am currently working hybrid where we are required to come in twice a week. Working from home really helps slow down overconsumption. There is no need to spend on new professional work clothes, buying overpriced unhealthy prepared foods and snacks and for some people who drive to work who spend gas and mileage. Overall I think it’s good for society to be more intentional with how we consume our resources.
I think this is awesome! Start converting office buildings into homeless shelters or condos!
Note that you brought up this point at the end of the video (glad you touched on it), but the issue is that they should have done this ages ago! It’s been 3 years!! They keep doubling down on bad decisions and. Not changing and adapting, which will. Hurt them more long term imo. In the example you gave, if the company who owns that building had enough buildings it would be “easy” enough to shuffle people around and get some of the buildings ready. As for renovations, sure i guess you can add in some showers and build some more walls or something, but it’s not that difficult imo. We’re not talking luxury housing here I’m thinking more low income housing or cheaper dorm like housing.
It's not _that_ easy. There's a good video by CNBC about it. Let me find it for you.
Here: ua-cam.com/video/2BOdJadZflw/v-deo.html
@@slidebean appreciate you responding and the added info! i grew up next to NYC so it's definitely a different animal than other parts of the world (i'm in LA now). I still think with a lot of work it is possible, just as it is for LA to get mass transit, but there's a lot of barriers where people don't feel it is worth it to invest in the future, which to me is sad.
in any case gonna watch the video now, thanks!
@@slidebeanok watched it, yeah time and time again the thing that prevents housing being done is NIMBY and policies either from people like that or things very outdated. Seems like NYC isn't different here. The other things can be overcome with enough funding, but that, once again, is on policy. Government red tape holds back society a lot since it can't keep up with technology, changing economic situations, and infrastructure needs (like mass transit). NYC rent is absurd too, but that's a totally separate issue, which will hopefully be somewhat helped by an influx of housing from conversions, but likely not and they'll be large luxury studios. Growing up i remember seeing old industrial/commercial buildings/warehouses converted into studio apartments for artists and similar. surprised there isn't more of that. Also i'm curious why there is a NEED for a bathroom and all these things for apartments. In college i was totally cool with dorm living and having shared bathrooms. I don't see why some offices can't be turned into communal living situations or something. It could be cheaper than what was proposed otherwise.
I agree about a lot of the video in general thanks for the link! I really like how it touched on the reality that not every building can be converted and how much can actually be converted, something that will likely vary city to city. Appreciate the discussion and extra info in that video!
Engineering and Architectural design of these buildings aren't suitable for residential. Even if you attempt to transform it to one, it'll take massive load of installation that would require additional millions of dollars renovation without the assurance they'll get their ROI.
No one wants to waste time commuting anymore, empty offices become repurposed to much needed housing...the bigger housing supply will suppress house prices making it more affordable for everyone.
Make them into housing and we may even be able to pay the lower rent caused by higher supply
Another side to this, I did not see, is where you will have to combine living space and retail space. This will force people, that work from home, or live a lot of time at home, to pass by retail spaces. Like the first floor of a building being a retail space and the other being a living space.
@@muadhnate I hear that all the time from my students. It is nice. I think this should be more widespread.
This is just how the rural towns got destroyed when people moved to the cities, honestly people moving to smaller towns is better.
This is exactly why I can’t feel bad in the slightest. All these once wonderful small towns whose good times were completely eroded away many years ago as more businesses started concentrating themselves in larger cities. Remote work might be able to bring life back into these towns and undo that damage
I moved away from the city (Dallas) to a much more affordable town. I was fortunate that I got to take my job with me and continue working remotely. I still collaborate with many other departments and even our offices in other states and countries. Now, my money goes a lot further AND I am able to put money into shopping at smaller owned businesses and restaurants. Would love to know how/if remote working could bring some economic growth outside the big cities and into smaller rural and country communities!
If you are able to get a loan to buy a building you are not an entrepreneur, you have money already, so your land lord is already a rich person or a big company. Either way I'm not sorry for any of them.
It's another sign that you should be building residential RE instead of commercial. I believe the sector is ripe for this type of innovation (flexible conversion from one to the other).
I pay 2x for take-away food when wfh vs office, because I have places nearby where I can get food from. Office has deals with catering companies for discounted food. So The revenue/butterfly loss doesn't apply here. I agree that it applies in high rise layouts in business centers.
Note that I got better gear at home for working (internet speed and accessories) so that's a bigger investment than a cost cutting, profit oriented company would offer.
In short, I believe that the shape of cities will change and that office space transformed into living space would lead to more offers for residential space and lower cost in the long run, those construction companies would need to build something to remain in business...
Oh no, NYC is in trouble!
Anyway ...
Skill issue. Git rekt real-estate corpos. Have they tried eating out less?
Memes aside, one likely good side effect from this is that this might finally create an opening for some proper zoning reforms to allow for areas to be converted into mixed use.
Our co-workers and customers are all over the country and all over the world. To a large capacity, we have been working remotely with people for decades.
Let's all go back to wasting 3 hrs a day commuting, burning gas, and getting stressed out by 9 a.m., so a few people can speculate on our expenses.
If housing wasn't so inflated and the taxes weren't so damn high in these areas everyone wouldn't have relocated when they got the chance to work from home. The fact that places like New York had the strictest lockdown rules during covid are going to have a long-lasting effect on the city, as we are seeing. I don't think they will ever coral the people back to work in the offices now that the majority have probably moved away.
couldn't think of a more deserving town for this to happen to. grew up here, hate what's happened to it, glad this is happening instead
Remote work is when you have to leave home to do your job somewhere else. This was a consequence of the Industrial Revolution when people had to commute to a factory in order to produce. It was not how most people worked before, and it is not how most people NEED to work today. In the digital era, with video conferences and easy access to people through their smartphones, wasting precious time of your day just moving from one place to another is insane. Trading time you can spend with your family for time spent in a train with strangers, so you can do at the office what you are capable of doing at home makes no sense.
We already bailed out banks, car makers, airlines, etc. We don't need to go back to a wasteful life so we can bailout people that speculated in the commercial real estate. If they had invested in productive projects, instead of exploiting businesses, they would not have this problem... and would not have to transfer the cost to all of us.
When I worked from the office I earned 35k per years, had to rent an expensive city apartment, had to spend 2 hours a day commuting through rush hour traffic, often didn't have time to make lunches so i'd have to eat out more, I was counting pennies by payday to see if i could make ends meet.
When work from home started I bought a house in the countryside 2 hours away from the city for a quarter the price of my rent, no commute so I didn't even bother owning a car, made much healthier cheaper meals at home, thanks to the appreciation in the value of the house I essentially made an extra 100k per year without a single penny being added to my salary.
Arguing against remote work because of short term economic impact is short sighted. Remote work reduces CO2 emissions - vital for the next period ahead if we want to limit the severe impacts of global heating. Rather than propping up the current status quo we should use our creative minds how to make it work in a new way.
And you can totally be innovative working as a team even if you are not all in the same room. Different if you have to work on physical things.
A safe investment does not equal a guaranteed return, just that the risk of a negative return is low. That means it can happen, and it did.
Every so often things change. As an entrepreneur, you should know this by heart, as this is what leads to new opportunities.
As for feeling more productive in your startup when in-person, that has to do with internal processes, culture, etc. We all need to adapt.
I figured out that commuting was unnecessary long before Covid. I don't owe those overpriced restaurants any business.
It's less costly for workers to be at home where they can save money by not spending on things they don't need. That's important in an era of inflation and stagnant salaries.
Believing stores are empty because there are no clients is incredibly naive or of bad faith. Many people would love to open business on those spots, but they belong to companies and people that refuse to lower rent, and have enough money to pay property tax while waiting. Customers would love to have access to new options to buy their meals at better prices possible with better rents and shops operated buy their owners (do you really believe people eat out just because they are heading to office?) . But no one will have those chances, because of concentration of wealth, the real root of ALL evil.
Yes please focus on the big business ... the Starbuck, McDonalds , etc etc
Forget about the better quality of life.. or the SAVINGS for working people in transportation, baby sitting, food etc etc
Sorry downvote on this one Slidebean
Am happy i can work from home 3 days out of 5
Am happy i dont spend so much money on gas, or food, etc
I will play a small violin for all this big owner corporation loosing money on office space
"New York City is said to be the largest city in terms of GDP. For 2023, according to the World Economic Forum, its estimated GDP is $2.5trn."
Considering these numbers, $12 billion is nothing.
Landlords are not entrepreneurs. Real estate should not be an investment. They deserve no sympathy.
That is a problem about geopolitics, money is not gone, it is just somewhere else, we centralized work places because it was convenient, even more for big business owners like building owners, if money is going out from NY its going somewhere else, I am from Mexico and I hate the fact that we have very few big and kinda safe cities, we need to start decentralizing the economy and start buying and interacting with small and local businesses, we need to start creating more safe towns and allow people from outside of those big cities to have better opportunities too, this affects the economy because we want it to, we let big investors define and guide financial trends and I am not a kind of anarchist or anything like that, I agree that some of those decisions are better taken from those people than the average folk but we need to stop keeping that much financial power from just a few places like NY, LA, SF and so on, we need to start caring more for ourselves and the ones around us than the things and the names.
I am working in tech from Bangalore, India. Traveling to office daily isn't worth it, especially with calls in the night . My expenses have come down and thanks to inflation have again gone up. Without pay rise it isn't worth it anymore.
Well.. these people who took loans should now face the consequences of their decisions. It's not wise to take loans without proper planning. Bad decisions all the way...
So much hate for the landlords. I guess they've earned it a bit.
- Caya
I have been working from home, for many years. My work has no choice as some of it is in a different country. Now, do I always think work, or mostly working, from home is a good way to conduct work? No. I find that it has a lot of mental side effects. I find that it is a major cause for why I am almost always alone. If I had a place to go to, with people, working, my work would be much better as my mental state would be better. So, my point to this is that work from home, can be good, but it also can be bad. Each has goods and bads.
@@muadhnate Most people are working, and have too much time to do much, outside of work. So, technically no. For me, coworkers, was the only human contact I had, in-person, for the most part.
Respectfully this is not true. People go to work everyday and they’re lonelier than ever before. Work does not mean friendship, meaningful relationships, concern & personal support.
Hybrid is BEST
@@tpmash if that is a choice. For me it isn't.
@@tinamarie8061 it is human contact.
They will have to get rid of some regulations and allow for apartment conversions at a cheaper price. That will do the city some good.
How about using the space for housing?
are you a dumbares or do you not watch the video or think critically? it was clearly mentioned that converting an office building into housing requires adding a layer between each floor for the plumbing, notwithstanding other safety measures that require modifying the building. come on, watch the video before spewing out dumbass comments.
To who? The homeless?
No business would do that cause it's not profitable
The government won't do it cause the US is already drowning in debt of all kinds
It is kind of funny how we live in a world with a bunch of empty living spaces while at the same time people are working two jobs just to be able to afford rent. Most people had stopped buying the bagles before covid. The only way to fix an issue like this that the government has to step in and do something about it.
There is a big lack of data used for this video and a lot of anecdata instead. "A lot of my favorite restaurants closed". It would interesting to show the average rate of vacancy for retail Places in nyc pre pandemic versus now. Same for office ocuppancy.
Has your video editor started using different color grading? the lighting looks a lot more spherical and the set pieces are bordering on mid sixties. I personally love it, but i've been away from slidebean videos for a few weeks i think
Great combination of perspective context and awareness of reality creating down to earth substance. Well done.
There was once a time that the streets of nyc were overflowing with horse shit. The city and its industries were transformed by the car. Now we understand that commuting via those streets is itself horse shit. Cities and their industries will once again need to transform.
NYC and LA are the new Detroit.
Making people return to the office after inventing remote work is like forcing people to use ships for overseas travel after inventing airplanes or forcing people to use horse-drawn carts after inventing an automobile. Backtracking to old ways simply does not make sense.
Some CEOs are giving an argument that remote work is just a thing of the pandemic and that people need to come back to the way things were. It sounds like if women's participation increased in workplaces after the world wars then the CEOs would push the women out of the workplaces and only allow men as it was the "way things were" before the world wars.
We are not obliged to feel sorry for anyone mentioned in this topic because they certainly are not feeling sorry for us.
We live in the south east. Remote work is huge. However, commercial real estate, along with residential real estate are both doing phenomenal compared to the rest of the country. People are moving here from the large cities and it’s starting to get annoying. Lol. I can’t tell you how many fortune 500 companies have moved headquarters hear more Opened a major hub in our area. There is no crime whatsoever. No homeless. I believe the majority of people own a firearm, or carry one, creating a massive deterrent for criminals lol. Cost-of-living is very cheap, but that also means wages are typically lower than the national average. On the bright side, you can buy a 2000 square-foot three bedroom two bathroom home on a quarter acre lot for a quarter million. I love your channel and what y’all do, however, I have to disagree with you. The urban decay is from the lack of leadership. If the policies in our state were anything like New York or California we would be in the same boat as you my friend. Our state votes, 80+ percent red every year and we all know we’re better for it. Even the people that believe in the blue policies and politicians. After all they moved here from your state.
Real America 🇺🇸
In a city were housing is absurdly expensive and limited concert those office spaces to homes! This will allow those small mom and pop retailers and restaurants have consistent customers that won’t fluctuate the way their current office worker customers do.
Companies are under no obligation to prop up failing markets artificially (commercial real estate). Remote workers contribute more $ to local economies, rather than to overpriced "city-centers"
Amazing doc as always ❤
You are wrong about 2008. The crisis has been caused by stupid gov regulation to estimated value of assets based on the latest transaction price...not the market price.
New startups will share smaller space in these empty buildings. So city doesn't have to build new buildings and get over crowded (already is). More people working from home is better for the environment and less traffic is good for rest who commute. Talking about the restaurants, food delivery also boomed and they don't have to rent bigger space a well. Greedy property owners/dealers have to adjust to this new way of working.
The world changes, sometimes you just have to go with the flow. Have you considered that NYC is simply an obsolete concept and will NEVER really recover ?
See also Detroit and other rust belt cities.
6:54 innovation occurred in the office because that’s the only place it was allowed (remote work wasn’t a thing) - being in office does not directly correlate nor is it causative of more innovation - that’s not an accurate conclusion to draw. That’s like saying my employees were more innovative solely because I forced them to wear formal/business attire instead of business casual.
The only cost is to rich people. Remote work is good for normal people and small businesses in local economies.
It is also the golden age for smaller companies that can now hire the best developers when they offer work from home.
We don’t need to save offices. It’s ok. Let it go.
Nobody wants to live in NY… most people would leave if they can. In fact, majority of the people who left were remote workers. Remote workers didn’t just stay in NYC. They moved around. Some came in for a short time then left after they were fed up too. The people who stayed are the people who can’t leave and not a whole lot of people are able to work remote. Simply the highest paid with more disposable income are the people who can mostly work remote. This whole video was propaganda ridden jeez
Company CEO makes a video against WFH, what’s new?
Great topic
Banks aren't able to sell overpriced houses 😅
Remote work didn't break New York. New York broke New York
Indeed.
People need to STOP LEAVING NEW YORK to come to my state. Why don't they just stay where they are, come together, and fix or vote against the city's problems? Running away makes the city worse. Please, remain in your own state. Thanks
Wow my very sane comment explaining why Caya is wrong is removed by yt.
I just don’t care, i rather 1000 people to have a better life quality than a small lanlord to lose a building, this just shows that the market was inflated
I'm about to start remote working and once I catch my stride my dippin out of NYC the city has gone to hell. It's time to escape NYC.
They can convert the office spaces to residential spaces. There is no need to demolish the buildings.
Maybe we do need a recession after all? We need actual homes in NYC not offices. Average rent is insane, and adding going to the office to spend time on zoom won’t help anyone. It feels like saving something we don’t need at all.
Manhattan packed af you can't even tell offices are empty
Convert empty office space into housing. Government should incentivize conversions.
Great video!
7:19 Needs explanation. Happy to chat about it. My entire career has been tech that allows for remote work and have worked and managed entirely remote teams for years.
I do hate how landlords want both a free market economy and guaranteed gains. In 2008 we privatised the gains and socialised the losses, it’s shameful. Let rich people fail like the rest of us!