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mostly_harmless | 3 years ago

and a commercial real estate crash would be bad for the company's bottom line

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MSM|3 years ago

I see this everywhere but I can't see how it's true.

I'm guessing that a company's largest expenses are (probably in order, too): People, Technology, Office space.

Most companies, especially smaller companies, do not actually own the office space they are in, they lease it. Commercial real estate crashing would greatly reduce one of their top 3 expenses... how is that bad for the bottom line?

crent|3 years ago

Yeah exactly. If they signed a multi-year lease, they are still on the hook for the same amount of money but the space won't be used. It might feel bad but it was already budgeted for.