Because the executives have money in, or relationships with, investments funds that are heavily vested in commercial real estate. So it might save money for the company, but the knock on effect of devaluing that real estate is a threat to many wealthy. So no matter how wasteful it is for the companies in question, the personal conflicts of interest at exectutive/board levels will ensure the farce continues until those companies are replaced or have no alternative.

Yes but there are some complicating factors.

Companies may actually need to provide an office for some employees who really need a place to work. Most people want to work from home but there are some who don’t have a suitable space and need something. And think about your IT crew: they need a physical space to store and work on hardware.

An office also gives the company a space where they can conduct job interviews, sales presentations, or corporate meetings. They may not be willing to just exit an entire city have no physical presence anymore.

Then there is the issue of blame: if they eat the real estate loss and just the lights out, whose fault is it? Someone gets the blame or has to at least put that loss on their books. They’d rather direct the blame at employees for not wanting to work.

And finally there are some execs who actually believe the office is better and will die on that hill.

Add up these factors and I think sometimes it tips the balance.