“Time to get your butt back in the office.” – Your CEO, probably
Amazon announced that staff are to completely return to office (RTO) in 2025.
This is a notable trend.
- Boeing
- Goldman Sachs
- UPS
- Tesla
Are all following suit. Expect the list to grow substantially.
According to KPMG’s 2024 CEO Outlook:
— 83% of CEOs expect a full RTO within the next 3 years, up from 64% just a year ago
What’s driving this?
As job growth slows, employers are gaining leverage again.
CEOs are betting that in-office collaboration will drive innovation and culture.
The data backs this up:
— 90% of CEOs plan to reward employees who RTO with promotions and key assignments
For commercial real estate, this signals fresh demand for high-quality offices.
The office is regaining importance as a strategic asset, especially as companies try to support culture and long-term growth.
It’s one of the pillars of Sentinel's investment strategy.
But productivity is playing a major role in this.
Employees often argue they’re more productive at home - but is that really the case?
On average, work from home productivity can be 30-40% lower compared to working in the office, particularly for jobs requiring collaboration and innovation (World Economic Forum).
Anecdotally, visit your local pickleball court at 11am on a Tuesday and you'll wonder where all these 28-year-old retirees came from...
Oh, the benefits of remote work!
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What do you all think?
Are leaders right to be calling their staff back?
What does this mean for the CRE sector?
Dennis was a great guest…not only because he has a great strategy with NNN but because he’s entertaining as well.