Lots of big companies have some pretty sweet tax deals with the state/city.
The state/city give the company a tax break and the workers who are in the office spend at local stores/restaurants/live local. The state/city get tax revenue from these smaller businesses and break even that way (what a great system, big companies get tax breaks and make it up on the back of the corner store).
Will be interesting how this evolves.
Anecdotally have heard rumors of some companies getting pressed from local politicians and warned about losing these tax incentives unless get people back in the office more frequent.
No insider info to any of this and no idea how it ends, but interesting if true.
“That said, some easy ones we don’t see coming back any time soon include: 1) massive commutes to cities - over the next 5-10 years the companies that offer remote solutions will take the talents”
To clarify, you *do* see a shift to massive commutes to cities vs living in city centers? Aka, wealthy people living in exurbs vs suburbs even.
We don't see commutes coming back any time soon. That means we don't see cities coming back to where they were any time soon (SF/NYC etc for at least 5 years)
Dis gonna to be interesting to watch as Apple and Google have their folks coming back in 3 days/wk now (they have tons of RE that sat empty). Curious what happens to their talent pool or will they change remote policy...
The top workers will always determine what happens. Example, the people who left to florida that were top tier, will not be asked to go back to NYC/California. This is due to their value to the firm
Naturally some people will return to cities but believing it will "go back to how it was" is pretty insane
Think this will fizzle out. In recent WEF podcast Susan Wojcicki seemed to tacitly admit that the only benefit of this hybrid policy was "it's nice to see people"... just one data point, of course
Lots of big companies have some pretty sweet tax deals with the state/city.
The state/city give the company a tax break and the workers who are in the office spend at local stores/restaurants/live local. The state/city get tax revenue from these smaller businesses and break even that way (what a great system, big companies get tax breaks and make it up on the back of the corner store).
Will be interesting how this evolves.
Anecdotally have heard rumors of some companies getting pressed from local politicians and warned about losing these tax incentives unless get people back in the office more frequent.
No insider info to any of this and no idea how it ends, but interesting if true.
Hotel occupancy tax revenue is huge too when the offices reopen for business travel and conferences commence.
Similar but different vein https://sanjosespotlight.com/san-jose-releases-googles-200-million-community-benefits-plan/
“That said, some easy ones we don’t see coming back any time soon include: 1) massive commutes to cities - over the next 5-10 years the companies that offer remote solutions will take the talents”
To clarify, you *do* see a shift to massive commutes to cities vs living in city centers? Aka, wealthy people living in exurbs vs suburbs even.
We don't see commutes coming back any time soon. That means we don't see cities coming back to where they were any time soon (SF/NYC etc for at least 5 years)
Dis gonna to be interesting to watch as Apple and Google have their folks coming back in 3 days/wk now (they have tons of RE that sat empty). Curious what happens to their talent pool or will they change remote policy...
The top workers will always determine what happens. Example, the people who left to florida that were top tier, will not be asked to go back to NYC/California. This is due to their value to the firm
Naturally some people will return to cities but believing it will "go back to how it was" is pretty insane
You’re already seeing a reversion to this policy due to high profile (and very expensive) attrition. https://m.slashdot.org/story/400032
Think this will fizzle out. In recent WEF podcast Susan Wojcicki seemed to tacitly admit that the only benefit of this hybrid policy was "it's nice to see people"... just one data point, of course