Would you mind explaining what these commercial real estate interests are? How does a company or the government benefit from having "butts in seats", all else e.g. productivity, equal?
I don't see how real estate companies can influence companies/tenants, they don't hold much power here since everyone is shrinking or cancelling their leases
Where I work, RTO is partially Finance driven, bean counters just don't like seeing seats they paid for go empty
Same here. Leaders up the chain get a "use it or leave it" mail for office space and suddenly everyone is asked to keep those seats warm by coming in x days a week.
If leadership wants people to RTO instead of just giving up seats, then it's 100% on them.
Problem is office space doesn't work like that when the entire team is in on 'office' days to collaborate, you need the all seats. If you right size down to 60% seats (3 days office, 2 home) and have people rotate, you lose the 3 in-office collaborative days because everyday it's likely 30% of people are dialling in from home. You save 40% rent but it's closer to full remote in terms of collaboration.
Only in the short term. It left the desirable parts of the building empty. It might be possible to rent out this space. That's what happened when the company I worked for downsized the factory; they just partitioned the building and rented out the empty space.
Tldr: fear of looking bad because metrics are more important than actual results
As you may be surmising, this not only carries rather major domestic risks if pension and other domestic funds start crumbling, but it also has massive implications for foreign countries’ domestic financiers and social stability, but it also has geopolitical implications from it.
During the post housing fraud period, a rather understated change was implemented to encourage accounting to not mark real estate to market value, i.e., record what the market is willing to pay, but rather keep real estate on the books for whatever value one would like to keep it at by various methods and practices.
What that essentially affected was a cooking of the books to prevent on book from showing losses. It is essentially still going on, but especially in commercial real estate since the COVID happenings.
You now still have massive buildings essentially still totally empty, all still valued at full occupation valuation even though they are, e.g., only taking in barely enough to cover operating costs in a freeze state, i.e., minimal services.
This is where things like property taxes come in, as the properties are still assessed at fabricated values, and property taxes are used to fund the local governments, everyone with financial interests in commercial real estate (many, because it was considered very safe) are now crying for mom. It gets a bit off topic here, but I think you get the gist.