this post was submitted on 03 Nov 2025
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Nah, it's that they signed multi-year leases and have to justify spending the money.
More like their friends own the building and they own their friends' buildings and they're all doing each other a favor to keep commercial real estate from declining.
I know that's probably the right answer. But it's also... something-something... optics and feels, or something else in the headspace of those in charge?
Why? As tenants they're still paying for electricity, A/C, heat, insurance, security, and office staff. And all that gets replaced with a beefier VPN and Zoom/Teams/Slack subscription, which a lot of businesses already had back in 2019. So, paying the remainder of the lease and having everyone work from home would still save money. Plus, I bet it would be possible to pay a reduced amount up-front in order to break the lease (say 75% of the remaining months), just so the building owner could (potentially) rent the space to someone else and double-dip. The fact that this isn't the math everyone is doing, just plain stinks.
You're not thinking 1 quarter at a time.
Surely it must be one or the other.