7 Comments
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OpLibertas's avatar

Great article James! Everyone is talking about the problems with banks and the problems with CRE, but this is the first I’ve seen how they’re linked and why that could be a huge problem.

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James Lavish, CFA's avatar

Thank you OpL. I’m happy this helped!

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toddjtaylor's avatar

My company closed an HQ in San Francisco and implemented permanent WFH for US employees. It's working and we won't be turning back. I can also see this impacting residential longer term because our employees now live in 28 states, not SF. 🤷‍♂️👋

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James Lavish, CFA's avatar

San Francisco is becoming a case study in so many ways.

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Edgar's avatar

The company I work for has 100K employees with offices all over the globe. They’ve already started consolidating buildings where multiple exist within close proximity.

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James Lavish, CFA's avatar

Interesting Edgar, thank you! Yes, I believe this is more of a structural change than a short-term adjustment.

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Edgar's avatar

Similar to toddjtaylor’s comment below, my company is consolidating from 3 to 1 office building just north of the Bay Area. Much of that driven by WFH employees and lack of products in the pipeline for some of our business units.

In Minneapolis, we have 8 manufacturing and office buildings. Lots of talk about consolidating a couple buildings.

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