It’s nothing new that headwinds and uncertainty persist with projected earnings and overall markets. But this is partly why return-to-office is being encouraged even mandated. Leaderships are drawing the line on flexibility. They’re discovering that efficiency gains during the pandemic aren’t holding up long term.
Remote workers were/are working harder to “maintain the privilege”, but sustaining efficiency and profitability are paramount now. Remote and WFH four to five days a week isn’t happening. Finally new elements of office culture are taking shape. With customer-facing workers, it’s more pronounced.
Slack and Zoom boosts efficiencies even mentorship, but connectedness and working together in the same room makes a positive difference. Large/medium companies are counting more badge swipes, and SMB is not far behind with its measures.
Granted, San Francisco office space and tech workers seem mutually exclusive, but tenants are done kicking the can down the road with one year renewals. They now know what they need which consists largely of back-to-the-office.
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On an unrelated note, we’ve seen a distinct flight-to-quality when it comes to this market. More than a few of our clients are evaluating better space in a better location.