The struggle to get workers back into the office may get a little easier if the U.S. economy falls into a recession. At least that’s what real estate billionaire Stephen Ross thinks, who made the comments in a recent interview.
“Employees will recognize as we go into a recession, or as things get a little tighter, that you have to do what it takes to keep your job and to earn a living,” Ross said. Ross’s firm, Related Company is the developer behind Hudson Yards in New York City, and his company owns office properties and other developments nationwide.
Some occupiers have been more vocal about getting employees back in the office than others, including banks like Goldman Sachs. Goldman Sachs is also warning the risk of a recession is growing, as economists at the bank are predicting a 30 percent chance of a downturn within the next year, which is about double the bank’s previous prediction.
Before office landlords celebrate too much, a recession could also negatively impact an office market that seemed to be turning the corner. In the past two years, companies in the finance and tech sectors have driven office leasing and demand, but those sectors have seen their stocks plummet recently. A market downturn may force more workers back into the office, but it could also slow down the expansion plans of big occupiers like in the tech sector.