Saturday, May 2, 2020

Changes: "Death of the office"

If this is true the implications for Manhattan (and other) real estate get really interesting.
From The Economist's 1843 Magazine, June/July issue:

The coronavirus pandemic has sped up a revolution in home working, leaving offices around the world empty. But what was the point of them anyway?
In the spring of 1822 an employee in one of the world’s first offices – that of the East India Company in London – sat down to write a letter to a friend. If the man was excited to be working in a building that was revolutionary, or thrilled to be part of a novel institution which would transform the world in the centuries that followed, he showed little sign of it. “You don’t know how wearisome it is”, wrote Charles Lamb, “to breathe the air of four pent walls, without relief, day after day, all the golden hours of the day between ten and four.” His letter grew ever-less enthusiastic, as he wished for “a few years between the grave and the desk”. No matter, he concluded, “they are the same.”

The world that Lamb wrote from is now long gone. The infamous East India Company collapsed in ignominy in the 1850s. Its most famous legacy, British colonial rule in India, disintegrated a century later. But his letter resonates today, because, while other empires have fallen, the empire of the office has triumphed over modern professional life.

The dimensions of this empire are awesome. Its population runs into hundreds of millions, drawn from every nation on Earth. It dominates the skylines of our cities – their tallest buildings are no longer cathedrals or temples but multi-storey vats filled with workers. It delineates much of our lives. If you are a hardworking citizen of this empire you will spend more waking hours with the irritating colleague to your left whose spare shoes invade your footwell than with your husband or wife, lover or children.

Or rather you used to. This spring, almost overnight, the world’s offices emptied. In New York and Paris, in Madrid and Milan, they ready themselves for commuters who never come. Empty lifts slide up and down announcing floor numbers to empty vestibules; water coolers hum and gurgle, cooling water that no one will drink. For the moment, office life is over.

Even before coronavirus struck, the reign of the office had started to look a little shaky. A combination of rising rents, the digital revolution and increased demands for flexible working meant its population was slowly emigrating to different milieux. More than half of the Ameri­can workforce already worked remotely, at least some of the time. Across the world, home working had been rising steadily for a decade. Pundits predicted that it would increase further. No one imagined that a dramatic spike would come so soon.

It’s too early to say whether the office is done for. As with any sudden loss, many of us find our judgment blurred by conflicting emotions. Relief at freedom from the daily commute and pleasure at turning one’s back on what Philip Larkin called “the toad work” are tinged with regret and nostalgia, as we prepare for another shapeless day of WFH in jogging bottoms.

But we shouldn’t let sentimentality cloud us. Offices have always been profoundly flawed spaces. Those of the East India Company, among the world’s first, were built more for bombast than bureaucracy. They were sermons in stone, and the solidity of every marble step, the elegance of every Palladian pillar, were intended to speak volumes about the profitability and smooth functioning within. This was nonsense, of course. Created to ensure efficiency, offices immediately institutionalised idleness. A genteel arms race arose as managers tried to make their minions work, and the minions tried their damnedest to avoid it. East India House, in which Lamb worked, could give call centres a run for their money in the art of micro-managing. At the start of the 19th century, the company introduced an attendance book for employees to sign when they arrived, when they left and every 15 minutes in between. Not that it proved much use. “It annoys Dodwell amazingly,” wrote Lamb. “He sometimes has to sign six or seven times while he is reading the newspaper.”

The first offices belonged to governments or quasi-government bodies like the East India Company. Running a country, let alone an empire, requires a lot of paper to be pushed and governing proved simpler when all those functionaries were in one place. But it was the Industrial Revolution that really changed things. Coal, steel and steam started to spin the wheels of the English textile industry ever faster and railways unspooled across the countryside. The new steam trains shuttled ever more workers into the cities, where they plumped themselves behind desks in order to practise ancillary professions – finance, law, retail – that flourished on the back of heavy industry. The rhythms of the countryside were left behind. Work, which had once been patchwork, piecemeal and often weather dependent, became the fabric of life itself.

The most transformatory aspect of offices was less the buildings themselves than the sheer amount of time we spent in them. This would have seemed alien to many earlier societies. Mary Beard, professor of classics at Cambridge University, notes that elite Romans strived to switch off as much as possible. “Our division between leisure and work is reversed in the Roman world. What we mostly do is work and, when we’re not working, we’re at leisure.” In Rome it was the other way round for the elite: “The normal state of play is otium, it’s leisure. And sometimes, you’re not at leisure, you’re doing business, which is negotium.” Though the English word “business” has an inbuilt aura of action and industry, the Latin neg-otium – literally “not leisure” – has an almost grudging sense of pleasure denied.

Romans didn’t have to go to a special place to work. Their tablets and styluses were every bit as portable as our own, a feature that elite Romans took full advantage of. Two thousand years ago Pliny the Younger, an author and lawyer, wrote a letter to his friend Tacitus. He had found, he said, a splendid new method of working. Instead of going about his business at a desk, he had decided that day to combine it with a boar hunt. He sat next to his nets “not with boar spear or javelin, but pencil and tablet, by my side”. After expanding on the pleasure of his method for some time, Pliny (the office boar) concluded that this was a remarkably productive way to work since “the mind is stirred and quickened into activity by brisk bodily exercise”. He concluded by advising Tacitus, “whenever you hunt, to take your tablets along with you”.....
....MUCH MORE

As a side note, a couple years ago we had a project to locate some of the lesser known (or unknown) pockets of wealth taken out of the East India Company and found just how much upward mobility training to be a clerk ("writer") afforded the young and adventurous and/or desperate.

Unfortunately it didn't result in any prospects for bespoke financial counsel but quite an interesting study.
Plus it gives some backstory to India's claim that Britain owes it $45 trillion (note dollar sign):
"In Unprecedented, Shocking Proposal, BOE's Mark Carney Urges Replacing Dollar With Libra-Like Reserve Currency"
Dear Governor Carney,
India would like their $45 trillion back and based on the responses to informal queries, would prefer it in dollars rather than a libra-like reserve currency.
Yr. pal,
Climateer