Top executives who signed office leases before the pandemic are becoming increasingly frustrated with rows of empty desks, which is a major factor in their return-to-office (RTO) policies. A recent survey by Resume.org found that one-third of companies cite lease agreements as the driving force behind their RTO mandates. More than half of leaders who leased offices believe the lease itself underpins their mandates.
Many firms with leases that won’t end until 2028 are planning to scrap or reduce their RTO policies. About a quarter plan to decrease office space when it’s time to renew, while one in ten admit they’ll drop the mandate entirely after their leases expire.
The main economic factor driving RTO policies is not about the cost of the office space itself, but rather the perceived value of having employees physically present. Bosses want to feel like their money is well-spent and that workers are using the space.
However, experts argue that this assumption is often unfounded. With many companies already paying for office space, the primary driver of RTO policies is emotional, not practical. The sight of empty desks can fuel fears about employee productivity and morale, even if it’s inaccurate.
Elon Musk, a vocal proponent of in-office work, has echoed these concerns. He claims that remote work costs the federal government $2 trillion, although experts have disputed this figure. Despite this, Musk remains committed to pushing for five-day office mandates for government workers, citing the waste of federal funds as a justification.
Source: https://fortune.com/2024/12/17/return-to-office-lease-agreements-rent-elon-musk