“We have decided we will not renew our lease when in January,” the email said. “Our employees have told us they like working at home and, as you’ve noticed from the monthly reports, the business hasn’t suffered in terms of revenues or profits. This will save us more than $100,000 next year.”
That came from the head honchos of one of the businesses I have an interest in. They currently occupy a 4000-square-foot building.
Then this morning, inside a local bank with which I do business, K and I noticed that there were only three employees in the offices instead of the usual 15 or 20. “So will everyone be coming back now that our governor has given the go-ahead?” K asked the banker we were working with. “Not likely,” he said. “We’ve been doing fine with most people working from home. There are even some advantages.”
So I’m thinking that my speculation on June 29 that the commercial real estate market is in danger is feeling like the right call. I predicted office usage might drop 25% to 50%. Who knows? That may turn out to be an understatement!