Somewhat surprising that (CRE) it’s only 20% unoccupied…..
Offices can be “occupied” by tenants who either don’t pay their rent or have a heavily discounted rate.
The numbers that matter are actual rents collected.
It has to be higher than that in San Francisco. Downtown is dead weekdays.
They must consider the illegals being housed as occupied spaces.
It's way more than that.
In commercial real estate, space is considered "occupied" if it has a lease in place and the tenant is paying the rent on a timely basis -- even if the space has been empty since the COVID fiasco began. The space goes from "occupied" to "vacant" when the lease expires and it goes on the market for prospective new tenants.
What we are seeing now is the expiration of leases and decisions by the tenants not to renew them. More and more companies -- including many that have tried to impose strict "return to office" orders in the last couple of years -- are going to see the wisdom of closing down (or dramatically downsizing) their offices entirely.
This is only going to get worse for commercial space in major cities even as everything else pretty much returns to normal.
Perhaps leased. Occupied I suspect is quite less.
It is a lot more than 20.. and leases are coming due. Closer to 50 % once all the leases burn out
It is a lot more than 20.. and leases are coming due. Closer to 50 % once all the leases burn out