![Commuters walk upstairs after exiting a New York subway station.](https://content.fortune.com/wp-content/uploads/2023/09/GettyImages-987578060.jpg?w=840)
Tuesday, the day after Labor Day, marks the third or fourth debate of the year about returning to the office. Getty Images
good morning.
It’s September, and it’s time for the third annual (and in some cases, the fourth annual) Return to Office Debate. It’s remarkable how stale that argument has become. Workers continue to point out abnormal productivity in 2020 (when there was nothing else to do), ignoring data showing declines in cohesion, belonging, and even mental health. . Meanwhile, while employers are proud to demand a return to the office (most recent examples: Amazon’s Andy Jassy and Meta’s Mark Zuckerberg), talented employees are demanding otherwise. Countless side job contracts will be terminated for employees.
Some CEOs thought, and perhaps hoped, that a recession might shift the balance of power in their favor. However, the recession did not occur. And the demand for real talent continues to grow. As a result, the two countries fall into a stalemate. Nick Bloom, a professor at Stanford University who is closest to an expert on the issue, said U.S. statistics have been “flat as a pancake” for the past two years, with office buildings in major cities running at about 50% occupancy and hours of uptime. He also said that it has remained at about 50%. His work-from-home rate remains at 25%, up from 5% before the pandemic.
Perhaps it’s time for us all to accept that a new normal has arrived. Workers have far more flexibility than they did before the pandemic, and we should celebrate that fact. Employers are used to being in the office three or more days a week and should try to make that time count. The numbers may change wildly over the next three months, but don’t count on that.
That means it’s probably time to focus on the real game: commercial office space. If occupancy remains at 50% and interest rates remain double what they were two years ago, building owners will be in big trouble. The problem is getting worse in New York, where prime office spaces that were in operation before the pandemic are now coming online, including Hudson Yards, One Manhattan West, One Vanderbilt, and JPMorgan Chase’s grand new headquarters. Over the past six months, almost every out-of-office meeting I’ve attended has been in one of these buildings, which has vastly improved space and better sustainability statistics. This is bad news for the Class B building crowd. new york times The story proves it.
So let’s focus on the real issue and discuss returning to the office. A workplace revolution has occurred. We may not have gone as far as some would like, but we probably won’t turn back.
Please see the news below for more information.
alan murray
@alansmurray
alan.murray@fortune.com
top News
Tiger’s troubles
fiery, not yet proven A memo circulating in the investment community is the latest thorn in Tiger Global’s side. The hedge fund invested heavily during the boom in 2021, at a pace that funded roughly one startup a day. However, the market collapsed the following year due to rising interest rates and crackdowns from China, and the country fell into trouble. Now, this anonymous memo, which Mr. Tiger blames on a disgruntled former employee, could deter investors who are already wary of sticking with the fund. luck
departure time
Qantas chief executive Alan Joyce will step down two months earlier than planned and be replaced by chief financial officer Vanessa Hudson.Joyce helped me Retaining Australia’s flagship airline It has managed to weather the coronavirus pandemic but has recently struggled with political dissatisfaction over government influence and record profits amid a cost-of-living crisis. Perhaps the final straw was last week’s accusation from Australia’s consumer watchdog that Qantas had already sold tickets for canceled flights. sydney morning herald
What sanctions?
Huawei’s latest smartphones are equipped with chips that are just a few years behind the most advanced, according to a study, evidence that the Chinese manufacturer is keeping pace with competitors despite years of U.S. sanctions is. In 2019, the United States banned Huawei from purchasing advanced chips and semiconductor manufacturing equipment due to the company’s ties to the Chinese military.But Huawei’s recent phones may show China can produce more advanced chips despite US rules Designed to fit the patella This country’s semiconductor industry. bloomberg
around the water cooler
How one man sold risk-averse Volkswagen and launched Europe’s most popular new car brand based on an unproven idea Written by Christian Hetzner
How Taylor Swift, ‘The Bachelorette’ and websites like Etsy are helping craft retailer Michaels turn around Written by Phil Waba
US and China’s $574 billion chip war is already an ‘extraordinary success beyond anyone’s wildest dreams’ for Joe Biden Written by Rachel Shin and Irina Ivanova
Ranchers accuse Silicon Valley’s ‘arrogant’ billionaires of buying up land for ‘fanciful’ city near San Francisco: ‘We are now completely under siege’ Written by Steve Molman
Commentary: Silicon Valley elites cannot trust the future of AI; we must break from their control and dangerous god complex Written by Vivek Wadhwa and Vinita Gupta
Women are tired of their LinkedIn pages being the target of unwanted sexual advances: “Sorry to be blunt, but what’s your bra size?” Written by Oriana Rosa Royle
This issue of CEO Daily was curated by Nicholas Gordon.