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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Because the country cannot tolerate WFH.

Banks are sh!tting bricks right now about huge losses they would be on the hook for as commercial real estate values tank due to WFH. City govts across the country are also in deep dookie as they are losing massive amounts of tax revenue due to commercial real estate vacancies. Converting offices to living space doesn’t solve the problem either, because local govts get 2x the amount of tax revenue from commercial RE as they do from residential.

Biden is moving t push fir RTO because our banking overlords will losing trillions of dollars due to huge losses in commercial RE value. Tons of local govts will also go bankrupt and spiral into insolvency. SF has now blown up its budget and is running almost $1B in the red now.  DC warned the same, and is almost $500M in the red over the coming years due to huge losses in tax revenue from office vacancies.  Our entire stupid system is built upon RE speculation, thus when the model gets completely upended the country is now at dire risk for a massive black swan event that will crater the economy.  All it is going to take is one bank going belly up and citing commercial RE losses for an economic maelstrom to be unleashed.[/quote]

Oh please.  Federal employees working remotely do not have the power to tank the economy.  Lol!!!  The histrionics are hilarious.[/quote]

Clearly you missed what Bowser is crying about.  DC is in deep do with budget shortfalls starting in 2024.

She is desperate for feds to return.  The metro is also losing massive amounts of money due to wfh.

https://www.nbcwashington.com/news/local/cfo-warns-dc-tax-revenue-to-drop-by-464m-budget-cuts-to-follow/3289228/

https://www.politico.com/news/magazine/2023/01/20/bowser-biden-federal-workers-washington-dc-00078677

https://www.dcnewsnow.com/news/local-news/washington-dc/metro-projects-750-million-deficit-which-could-lead-to-reduction-in-bus-rail-service/

Anyone saying feds wfh aren’t problematic for DC and commercial RE is delusional.  This same kind of story is playing out across the country. [b] Commercial RE is in dire straits.  Once a bank collapses due to huge losses it will be contagion.  Localities are going to up sh!ts creek without a paddle as their tax base abruptly implodes, since they’ve built budgets based on commercial RE values that no longer exist.[/b] [/quote]

Sure. But ordering feds back is like throwing a rock into a rushing stream. It’s not going to do much.

Commercial real estate won’t come back so long as the backbone of the US economy is small and medium businesses, many of which have realized enormous cost savings by moving to remote work. [/quote]

That depends on the size of the rock.[/quote]

Literally every single fed across the country could be ordered back to being in office (not even physically possible now), and that rock isn’t going to do much in the face of the stream. There is simply too much money being saved by other businesses.

The stream is not stopping. Cushman & Wakefield and JLL, two giant brokerages, just announced enormous losses in their recent earnings calls. As an example Cushman’s net income last quarter was $5.1 million, which is down from $97.2 million in the second quarter of 2022. That is a devastating change. This is post-pandemic loss: businesses are just not renewing leases. Why should all these small and midsized businesses take a huge hit to profits for the sake of large commercial real estate interests and mismanaged cities?

Biden can order workers back for whatever reason he wants. But it’s not going to do anything to stop the profound societal change that has already happened.

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