REI is selling their new HQ

[raygunner]

WSJ reports REI is selling their not-yet-completed corporate HQ.

Not good news indeed.

https://www.wsj.com/articles/rei-built-an-iconic-hq-because-of-covid-19-the-outdoor-retailer-wants-to-sell-it-11597263188?mod=hp_featst_pos3

[rnhood]

They probably want to get the hell out of the Seattle area, and who can blame them.

[AngryScientist]

the writing is on the wall: "Corporate Offices" are going extinct quickly.

Zoom is the new corporate office.

[ORMojo]

I'm not sure why this would be "not good news."

It appears they are selling because recent experience with remote work has been so positive for them. If this leads to more flexible remote work (which they indicate), less commuting by ICE, and many other possible benefits, and it works for the company, where is the bad news?

[ORMojo]

They probably want to get the hell out of the Seattle area, and who can blame them.

No, they say they will be establishing several smaller satellite offices around the Seattle area, and allowing for more remote work, including by people not in King County.

[weisan]

Are we on Friday Positive yet?

Mojo pal, you show us the way.

[Jef58]

Square footage is expensive. I'm sure our company's HQ is probably a ghost town. Even where I'm at in the manufacturing plant, half are working remotely...and that office space is sitting vacant that could be used for manufacturing. This looks like a new wave of things to come. Less traffic on the road, and according to many, people are more productive working like this. Interesting trend with a lot of positives, we'll have to wait and see what the negatives will be.

[raygunner]

I'm not sure why this would be"not good news."

It appears they are selling because recent experience with remote work has been so positive for them. If this leads to more flexible remote work (which they indicate), less commuting by ICE, and many other possible benefits, and it works for the company, where is the bad news?

Lower in the article it also mentions the financial hit from the stores being closed.

[theboucher]

They probably want to get the hell out of the Seattle area, and who can blame them.

What does this mean?

[rallizes]

What does this mean?

consider the source

[Ozz]

They probably want to get the hell out of the Seattle area, and who can blame them.
The new HQ was going to be in Bellevue....not Seattle....very different kind of place, separated by a lake.

They are embracing the remote working....I expect this to continue with other companies.

[m_sasso]

Same thing happening in Vancouver with MEC, Mountain Equipment Co-Op, Canada's largest outdoor equipment retailer. Built a large brand new headquarters, spent way too much money, ended up trying to rent a large portion of the new headquarters out.

[XXtwindad]

I'm not sure why this would be"not good news."

It appears they are selling because recent experience with remote work has been so positive for them. If this leads to more flexible remote work (which they indicate), less commuting by ICE, and many other possible benefits, and it works for the company, where is the bad news?

Definitely one of the silver linings of the Pandemic. Much better environmentally.

[jlwdm]

What does this mean?

I think you know what it means.

Jeff

[peanutgallery]

Next victim, those that "work" from home

Now that the MBAs have finally figured out the inefficiency of commercial properties, they'll hone in on the fact that what took days to accomplish at the office happens in 3 hours when working from home. They have too many employees

Methinks the workplace as we know it is changing

[dgauthier]

It all depends on what you're doing.

If you have a task that can be contained as a "black box" with little input from others, it can be done very effectively remotely or locally, it doesn't matter.

But tasks that require coordinated, problem solving teamwork suffer greatly without the constant, conversational exchange of information that takes place with face to face contact. In such cases it is important to ensure the team members are not just in the same building, but seated next to each other.

The process is fluid. One can keep one's employees together in the office at the beginning of a problem solving task, as they "figure out what they'll be doing." Once everyone knows what they're doing, they can stay home and proceed to do it, typically at peak efficiency.

[72gmc]

It all depends on what you're doing.

If you have a task that can be contained it a "black box" with little input from others, it can be done very effectively remotely or locally, it doesn't matter.

But tasks that require coordinated, problem solving teamwork suffer greatly without the constant, conversational exchange of information that takes place with face to face contact. In such cases it is important to ensure the team members are not just in the same building, but seated next to each other.

The process is fluid. One can keep one's employees together in the office at the beginning of a problem solving task, as they "figure out what they'll be doing." Once everyone knows what they're doing, they can stay home and proceed to do it, typically at peak efficiency.

Agree. I believe we’re going to see the pendulum swing a bit far the other way, and many benefits of in-person work for some roles (such as better work being done through collaboration, and less re-doing of work first done in silos) will not be missed until a lot of in-person spaces are dismantled. Then, there will be some level of return to in-person work. A boon for consultants, probably.

[Clancy]

The new HQ was going to be in Bellevue....not Seattle....very different kind of place, separated by a lake.

They are embracing the remote working....I expect this to continue with other companies.

If indeed the future is remote working, there well could be thousands of office buildings going vacant and potentially eventually foreclosed. Let’s hope they can be repurposed into new, positive, and sustainable uses.


I suggest grants to support bicycle co-ops! Community run bike shop on every corner!

[jds108]

And if the future is work-from-home, there is going to be another wave of outsourcing to foreign countries... I lived through a wave of outsourcing, not a fan.

[verticaldoug]

And if the future is work-from-home, there is going to be another wave of outsourcing to foreign countries... I lived through a wave of outsourcing, not a fan.

I have to agree with this. The efficiency gains are largely illusionary being built on previous established personal relationships between employees. It is like a company being acquired and then slashing all R&D/investing in the future and turbo charging short term profits only to run out of steam down the line.

I think you lose the ability to mentor new employees and keep any kind of culture. Hence you are sunsetting your company with its current employees and the relationships/efficiency leave when they do.

[marciero]

Zoom, Teams, etc can facilitate some types of teamwork models well-those that require a lot of screensharing, for example, but are maybe not as good with others. How do the "agile", "scrum", etc. work models play out? Many businesses rely heavily on these models. Perhaps expanded capabilities with Zoom, etc., or even capabilities that have not been fully exploited. In any case I would agree that times they are a' changin.

Sort of related-Unity College up the road from me is selling their physical campus.

[buddybikes]

In my, large high tech mature company, president said he doesn't see facility blueprint to continue, may drop 30 to 50 percent. Facility managers are working on plans to build team centers, where people will pop in, do you collaboration, then back home. You won't have a desk.

Term "outsourcing" is for task to leave the company. Perhaps - that has heavily happened especially in IT. What will be the norm (actually already) is more hiring to low cost countries so your buddy sitting next to you is now in Costa Rica. For me it is fun, I love working with other cultures. From US perspective, it challenges universities to bring in unique people that can make a greater impact from that low cost. I am here because my direct work with US Govt on trade matters. USG doesn't want a Mexican or Indian contacting them ( US State, Commerce or Treasury)

[peanutgallery]

I guess they'll have to change the name of the college to Dispersed:)

Zoom, Teams, etc can facilitate some types of teamwork models well-those that require a lot of screensharing, for example, but are maybe not as good with others. How do the "agile", "scrum", etc. work models play out? Many businesses rely heavily on these models. Perhaps expanded capabilities with Zoom, etc., or even capabilities that have not been fully exploited. In any case I would agree that times they are a' changin.

Sort of related-Unity College up the road from me is selling their physical campus.

[raygunner]

Apart from the perception that REI is selling their new HQ because experience with remote work...how does REI compare in the realm of e-commerce?

I always enjoyed going into their stores and check out the goods, especially the beautiful brand new store they just completed in Chicago.

But I haven't set foot in my local REI since earlier in the year but I have no plans to walk into one.

I need groceries so I'll go to the grocery store but there's nothing I really need from my REI store that I can't buy online and have shipped to me. But you know, I usually find what I want for less than REI offers.

Is the WSJ article a harbinger of bad news for REI?

[Ozz]

Apart from the perception that REI is selling their new HQ because experience with remote work...how does REI compare in the realm of e-commerce?
...
I've always like the REI eCommerce...they ship for free to a store, and I have one about 2 mins from my house.

Pick up there, try on, doesn't fit, exchange right there....one stop.

The location also has a Trader Joe's in it, so that is convenient too.....

[happycampyer]

I have to agree with this. The efficiency gains are largely illusionary being built on previous established personal relationships between employees. It is like a company being acquired and then slashing all R&D/investing in the future and turbo charging short term profits only to run out of steam down the line.

I think you lose the ability to mentor new employees and keep any kind of culture. Hence you are sunsetting your company with its current employees and the relationships/efficiency leave when they do.Agree 100% with this. For my team, it's one thing to maintain the status quo when everyone knows how to do their job and knows others and the organization. The process of hiring, training, supervising and mentoring new employees is a much bigger challenge.

[mistermo]

If indeed the future is remote working, there well could be thousands of office buildings going vacant and potentially eventually foreclosed. Let’s hope they can be repurposed into new, positive, and sustainable uses.


Acres of empty parking lots
Avg mileage/year on a car will be 5k rather than 12K
Fewer cars sold=fewer car dealerships
Less oil fracked/pumped = fewer gas stations
Fewer insurance claims = fewer agents/adjusters
Increase online shopping = fewer malls and retail locations


The change on land use is seismic.

[fijichf]

Avg mileage/year on a car will be 5k rather than 12K
Fewer cars sold=fewer car dealerships
Fewer insurance claims = fewer agents/adjusters

Equates to fewer personal injury attorneys but you wouldn’t know it based on the number of highway billboards that I recently saw driving through NC and SC.

[ORMojo]

Increase online shopping = fewer malls and retail locations

The change on land use is seismic.

And did you see the article about Amazon being in talks with the largest mall owner with the goal of turning empty former Sears and Penneys locations into distribution centers...

[bigbill]

My employer has an almost new corporate headquarters that has sat empty since the pandemic. Somehow all the manufacturing plants kept going with some engineering and enforcement of PPE. All my counterparts from corporate are working from home and at this point, provide no value. There has been discussions of making one plant the lead and spreading all the corporate folks out to the individual plants. The concept of corporate headquarters is dated.

[jtbadge]

Y'all are dangerously close to stumbling on the virtue of UBI, here.

[unterhausen]

We talked to some people about a possible consulting job and it struck me they were all WFH when one of them said "if you go down there" -- meaning the plant. I was stressing a little bit about the work because of potentially having to go do some experiments at their plant, but I feel a lot better about it if it's empty.

[Routewerks]

wrong spot, sorry

[peanutgallery]

If anyone in the world is deserving of getting hung with a bunch of former Florsheim shoe locations, it's Jeff Bezos:) And maybe Al Bundy

Though I know little about logistics, pretty sure a ragged out JC Penney location has little to offer anyone, especially Amazon


And did you see the article about Amazon being in talks with the largest mall owner with the goal of turning empty former Sears and Penneys locations into distribution centers...

[oldpotatoe]

Apart from the perception that REI is selling their new HQ because experience with remote work...how does REI compare in the realm of e-commerce?

I always enjoyed going into their stores and check out the goods, especially the beautiful brand new store they just completed in Chicago.

But I haven't set foot in my local REI since earlier in the year but I have no plans to walk into one.

I need groceries so I'll go to the grocery store but there's nothing I really need from my REI store that I can't buy online and have shipped to me. But you know, I usually find what I want for less than REI offers.

Is the WSJ article a harbinger of bad news for REI?
I've always like the REI eCommerce...they ship for free to a store, and I have one about 2 mins from my house.
Pick up there, try on, doesn't fit, exchange right there....one stop.
The location also has a Trader Joe's in it, so that is convenient too.....

No thanks...'stores', even ones that try to enforce the 'rules' are not a great place to be, yet...IMHO...

[AngryScientist]

i like REI a lot, and i hope they can find a way to reorganize themselves a bit to cope with the current situation and remain viable.

i travel a lot, and i like knowing that the REI stores located in major cities will have a reliable stock of decent gear if i forget something or want to go on an unplanned adventure. i also like that they have the local hiking guidebooks and national park maps and guides in the stores so you can pick up a plan when on the road. i've also gotten some great local recommendations for stuff to do from the staff, who i have generally found to be helpful and enthusiastic about their jobs and the outdoors.

maybe i'm being naive, but it also appears to me that REI tries to do the right thing with regard to their employees and treat them well while maintaining a good business.

that said, the stores are what make REI special and good. the problem when everyone shops for everything online is it's too easy to find the lowest price and free shipping on everything, and for a lot of people, it's hard to justify buying a saddle for example from REI for 150 dollars when it can be bought from amazon for 89.

anyway, hopefully this will all be over soon enough, and we'll all be back to shopping at stores, but there is little doubt a real recession is looming, and the fate of big corporate offices is likely not one that will survive,.

interesting times.

[Red Tornado]

I get the work at home thing for many jobs out there. My only problem is this: home is where I go to GET AWAY FROM WORK.

It's my safe haven where I can forget about meetings, why machines aren't running, why tooling that's worked great for 10 years suddenly won't make a part to print, why I have to turn in yet another form of justification for a capital appropriation request.... you get the idea. I can put that place out of my mind, enjoy time with my wife, do landscaping/fixer upper jobs according to MY schedule, etc. I don't even bring my laptop home. I also think I would have problems becoming distracted from my job to do things around the house.

I guess I have to respect those who can successfully work from home, I don't believe I could or would want to. Thankfully, since I;m a tool/manufacturing engineer I probably won't have to worry about that.

[unterhausen]

There was a recent study that said people are working longer at home than they were at the office. I can see it, my wife will work all day on the phone and on zoom and then have meetings with her coworkers for fun after work.

I'm not sure I would be as effective WFH as in person, but I guess i could adapt. Lab work is stalled though, so no opportunity to find out.

[bking]

I wonder how this will affect liability in the workplace, workman's comp etc? Lot's of things to be uncovered still as we move to the next phases of world wide pandemic. Fascinating to watch, frightening for many.
And as to output, I like many of the comments above that true output will only be seen after we've done this for a while. New things are often exciting and we go at them with some energy and purpose. We'll have to see how these kind of workplace changes wear on us. Interesting stuff for sure.

[ColonelJLloyd]

I wonder how this will affect liability in the workplace, workman's comp etc?

Worker's comp insurance for people who have the types of jobs that can be done at home are already very low cost, right?

[Jaybee]

Worker's comp insurance for people who have the types of jobs that can be done at home are already very low cost, right?

Certainly not as high as things like construction, but I bet we see a rash (size tbd) of complaints about things like carpel tunnel, sore backs, etc. Most WFH people don't really have a good ergo setup.

[mistermo]

I get the work at home thing for many jobs out there. My only problem is this: home is where I go to GET AWAY FROM WORK.

It's my safe haven where I can forget about meetings, why machines aren't running, why tooling that's worked great for 10 years suddenly won't make a part to print, why I have to turn in yet another form of justification for a capital appropriation request.... you get the idea. I can put that place out of my mind, enjoy time with my wife, do landscaping/fixer upper jobs according to MY schedule, etc. I don't even bring my laptop home. I also think I would have problems becoming distracted from my job to do things around the house.

I guess I have to respect those who can successfully work from home, I don't believe I could or would want to. Thankfully, since I;m a tool/manufacturing engineer I probably won't have to worry about that.

Agreed 100%! I could go on a rant about this, and will try to temper my comments.

We've cultivated a society where we're online perpetually. The intrusion of technology has blurred the lines between work times and non-work times. Any mental health expert will tell you that rate of depression has increased. Any spiritual practice will tell you that happiness comes from being 'in the moment'. Technology, and the blurring of boundaries between work and non-work, prevent us from being in the moment and, in my view, is a leading cause of depression. Working from home, only furthers the blurring of these lines and will have repercussions too.

Our company is working remotely and in accounting/finance, it's not hard to work remotely. However, I still come into the completely vacant office, to better keep boundaries in place. I think it's healthier, for me anyway.

[William]

Agreed 100%! I could go on a rant about this, and will try to temper my comments.

We've cultivated a society where we're online perpetually. The intrusion of technology has blurred the lines between work times and non-work times. Any mental health expert will tell you that rate of depression has increased. Any spiritual practice will tell you that happiness comes from being 'in the moment'. Technology, and the blurring of boundaries between work and non-work, prevent us from being in the moment and, in my view, is a leading cause of depression. Working from home, only furthers the blurring of these lines and will have repercussions too...

.

Early on in the lockdown Mrs William found that working from home blurs those boundaries too much. When work is stressful it's hard for her to unwind since it's happening in the home. The enviroment for work and relaxation is one and the same. Much easier to leave it at the office when you can come home to a totally different environment. At this point she can choose to go to her office or stay home which makes it much easier to deal with. She likes the choice, but prefers being at her office to really get things done and make the break when she comes home.






W.