Yes, for the companies offering remote work downsizing your real estate footprint can be a huge cost savings.

For the real estate industry, however, the effects are devastating and the future looks terrifying. These companies are absolutely shitting themselves.

Outside observers tend to get these effects mixed up, because there is some bleed over, albeit in weird ways. Basically, yes, Amazon would be better off using less office space, but Amazon share holders all have huge investments in real estate (because it’s considered the safest bet in the universe) and they’re watching their portfolios with mounting horror. So even though it doesn’t benefit the company, the shareholders are all big on getting people back into the office so that the unbelievably valuable global office real estate industry doesn’t face an existential threat.

This happens to align nicely with all the ways in which managers prefer having employees in the office because they prefer keeping people on a short leash (extra time to do all the shit you want to do means extra time for things like learning new skills and hunting for a better job), and of course many of those managers are also heavily invested in real estate themselves.

Its all a big complicated mess with many other factors that I’m glossing over. Real estate is in there, and it’s certainly a reason, but people are oversimplifying when they say it’s the reason, at least in my opinion.