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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This isn't so much about crime as it is cost. It's costing businesses a lot of money to stay in leases that no longer suit their needs. A lot of business are grappling with this. Why continue paying for space that's 60% than what you need due to hybrid work? I'm not thrilled with anything that DC is doing these days, but I'm not sure what DC or any city can do about the fact that the hybrid work model is here to stay in the private sector. [/quote]

They need to incentivize these companies staying. And of the companies which have announced they are leaving, only Fannie Mae might be WFH related. The Caps/Wiz and FBI leaving has nothing to do with WFH.

DC simply has no finger on the pulse of business in the city and has simply relied on the fact that a work force lives here while receiving a housing subsidy. Once that work force no longer works here and those people move, the city will see tough times.

Why do we want to lose FBI agents who are well paid and earn tax free housing allowances?
[/quote]

What do you want the city to do to "incentivize" private companies like Fannie Mae to stay? I'm not sure sure I'd want my tax dollars being given to private companies to offset their lease obligations.

And your premise is incorrect--these places aren't leaving because its employees no longer live here. It's because of money. Companies don't need to spend as much on big fancy offices if most of their workforce isn't physically in an office. It's cheaper to lease space outside of the city.

The FBI is a different situation that's controlled by the GSA. Few FBI agents were even living in DC to begin with, and all of the reports cited space constraints as the reason they were looking outside of the city.

I do agree that DC should've done a better job trying to keep the sports teams here. They are leaving because VA offered Ted a better financial package and a huge plot of land. I don't think it has anything do with where its workforce lives.[/quote]

Agreed on all these points.

Fannie Mae is leaving because they are one of the most remote-friendly large employers in the country. They are not really enforcing any RTO mandates. They are actively recruiting from all over the country, including for (remote) management positions. The US government is Fannie's largest shareholder and has to show that its being responsible with costs. Remote and hybrid work allows Fannie to slash real estate costs, increase retention, all while keeping wages relatively flat.

Fannie is actually the canary in the coal mine. A lot more companies - particularly in tech - will relax RTO once they've cut enough head count. They can then look to cut RE costs and consolidate their physical footprint.

This is just the free market at work, all enabled by recent technological advancements to enable work-from-anywhere.[/quote]

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