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Posted: 2020-08-27 21:13:20

Pondering the Commercial Real Estate Market

From Brad Feld at Feld Thoughts
Originally published 2020 08 27
When we discuss this, I always ask the question, “If you could allocate 100% of your rent expense to your employees, would this be a positive or a negative to your employees?” That’s easy to answer, and when I remind CEOs that their all-in cost of being in an office is probably double what they pay in rent, they quickly realize it’s not a zero-sum game. I think we are in a phase of total denial by the commercial real estate industry about the dynamics going on. It’s a classic example of short-term, zero-sum thinking
When we discuss this, I always ask the question, “If you could allocate 100% of your rent expense to your employees, would this be a positive or a negative to your employees?” That’s easy to answer, and when I remind CEOs that their all-in cost of being in an office is probably double what they pay in rent, they quickly realize it’s not a zero-sum game. I think we are in a phase of total denial by the commercial real estate industry about the dynamics going on. It’s a classic example of short-term, zero-sum thinking
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Tags:commercial real estate,home order,tough luck,office space,amount of money,real estate market,long terms office,small rent deferral,sum games,strict stay,Crisis,covid