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Originally Posted by thoughtcriminal
I did a quick back-of-the-envelope calculation, and if either vanguard or black rock (or anyone else, for that matter) were to move 12,500 employees into the city, they would need about 3 million sf of office space, assuming average workspace and common space areas. even at dense workspace areas and minimal common spaces, they'd need 1.5 million sf for 12,500 people. and that's using pre-covid office space layout guidelines. that probably means a major skyscraper, and hopefully not an "urban office campus".
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Pre-covid guidelines are likely gone forever in the finance segment. I've worked in finance since the 90s and I've never seen a bigger transformation in how things are structured. Granted, we've been moving towards this for a long time with tech but the pandemic has really accelerated a new model.
The only reason to have people in the office is because that's where you meet clients. But clients have now experienced meetings virtually and that's what they prefer. You'll always have the old-timers that want you to take them to lunch but that's obviously not happening. The other reason is that managers want to see you working. Finance has been one of the most reluctant segments to embrace the new remote corporate model. I think it's because new people require so much management to stay on track that want them infront of them. But this pandemic forced the issue and firms have figured out how to control/manage/babysit their people remotely and at a huge savings. And the old schollers who could not imagine working from home or even how the hell to even do that are retiring. The kid who grew up with an ipad on his lap is now managing the region. He knows how to do that.
Most if not all of the "work" is done at a computer anyway. Has been for years.
The money that firms will save on office space will eventually force the descision even if management fights it. It's the same reason why Christmas parties and other "perks" like that went away years ago. I remember when a finacial firm I worked at which I wont name but that that rhymes with Schmorgan Schanley told us that they would be willing to buy the soda if we found a place to have the christmas party. I kid you not. Not long after that, they took the coffee machine out of the kitchen. Someone upstairs realized that people would work there even if they took all that away.
Office space is next. They'll deliver a workstation to your house, require you to wear business attire (from the waist up) and probably include a background banner you need to hang behind you. Managers will figure out a way to make damn sure you're workling just as hard as you were when they could physically lorde over you. Trust me. I have a cousin who works at Deutsche Bank in manhattan. very stodgy old bank. He moved to Vermont a few months ago and hasn't missed a beat.
Where you're headquartered makes a difference from a perception standpoint. People still think that a firm located in mahattan has more horsepower than a firm located in say...Indianapolis - fair or not. So a Philly headquarters would still be a benefit. Historically, Philly has been viewed as a staid, old-money center of welath and thus wealth management. So firms would benefit from that perception.
But the huge footprints of trading floors and manic environments are gone. I think that plays right into Philly's hands.