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Comment by diggernet | Hacker News Reader

I have heard rumors (yes, completely lacking proof) that some major banks with huge commercial loan portfolios are using those loans as leverage to coerce companies into loudly demanding return to office. That's actually pretty easy to believe, because they'd really be hurting if commercial real estate values were to plummet.

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How are they using those loans as leverage? The terms are set, your student loan company couldn't make you, I don't know, tweet something you didn't want to.

It could be a line of credit, which might be modified. There could also be an ongoing relationship, related to the issuance of a series of loans used for financing inventory or something like that.

Student loans are different from commercial loans. Student loans are long term, with all the details fixed for the life of the loan. Commercial loans are more fluid, and generally have short terms, adjustable rates, and other fun things.

Two possible approaches to leverage quickly come to mind:

- The carrot: "You've got a loan with us for $xM at y%. If you show you are committed to this office by maximizing occupancy, that lowers our risk and we can give you a 0.1% discount."

- The stick: "Your loan term is expiring soon. I know it'd hurt to need to make that big balloon payment. Let's discuss our conditions for rolling you over into a new loan."

Commercial leases are typically five years.

It is 2024. COVID was 2020.

If you don’t own your building you should be thinking hard about your new negotiating position with your landlord.

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