Somewhat surprising that (CRE) it’s only 20% unoccupied…..
How did those lockdowns work out?
We are China. All of our economic numbers are made up. The reality is always worse than they say.
The large office buildings could be converted to residential use.
Converting them to mega apartments would be cheap and profitable.
Trying to add 200 units of affordable housing in an office building over a two-year conversion period is stupid when twelve buses with 55 invaders each are arriving nearby daily.
The right way is to stop the invasion.
Dear Asylum Applicant:
The danger you face in your homeland is far less than that of a typical American homeless person.
¡Adios!
Judge
Of course its mostly in the most expensive cities.....the places people are fleeing. ie the blue crap holes that have out of control crime and which are flooded with drug addled bums crapping on the sidewalks. Who in their right mind would want to live in a place like that?
They aren’t getting those employees back. Everyone who returns to an office will face a pay-cut for transportation, food, and parking. By facilitating online work, they irretrievably broke the in-office model. All those white-collar jobs though are going away anyway once AI implementation is streamlined.
We will experience our own “Evergrande” on our own shores.
CRE is a cancer on our urban economies. “Escape from New York” is not that much of a stretch these days.
QOZ = Qualified Opportunity Zones
I have not seen any articles about these entities. But the 2017 Tax Act created them. Individuals with capital gains can/could reinvest money in QOZ property and eventually get capital gains taxes deferred and/or reduced and/or forgiven.
I am not an expert on these techniques, but understand enough to realize the benefits/risks. Sort of like a 1031 exchange.
There is at least one QOZ in each of the 50 states. And they are typically in “economically” underdeveloped/disadvantaged areas. So Oakland/San Jose is an example. San Francisco not on original list, but LOL - maybe they can get on there for the next round.
Anyone seen articles on QOZs in last few months? Maybe some here have invested in them?