Posted on 06/29/2024 1:36:15 AM PDT by Kaiser8408a
Did NAIOP get the memo? NAIOP (National Association of Industrial and Office Properties) is a trade group comprised of commericial real estate developers and academics. Lobbying for more office space to be built despite overbuilding,
Another chink in the armor of the US economy (not the roaring economy Biden and Yellen keep screaming about). Overbuilding of office space, COVID shutdowns, remote working and urban crime. A recipe for office vacancy. Moody's predicts 24% of office towers will be vacant by 2026!
During the first three months of 2023, U.S. office vacancy topped 20 percent for the first time in decades. In San Francisco, Dallas, and Houston, vacancy rates are as high as 25 percent. These figures understate the severity of the crisis because they only cover spaces that are no longer leased. Most office leases were signed before the pandemic and have yet to come up for renewal. Actual office use points to a further decrease in demand. Attendance in the 10 largest business districts is still below 50 percent of its pre-COVID level, as white-collar employees spend an estimated 28 percent of their workdays at home.
A new report from Moody's offers yet another grim outlook that the commercial real estate downturn is nowhere near the bottom. Elevated interest rates and persistent remote and hybrid working trends could result in around 24% of all office towers standing vacant within the next two years. The office tower apocalypse will result in more depressed values that will only pressure landlords.
(Excerpt) Read more at confoundedinterest.net ...
Many metro offices were physically vacant years ago. The lease agreements/terminations are finally catching up to the vacancies.
Ultimately, the outcome is good especially for young families where the 10 hour/day devotion to the middle-management losers has proven to be a waste of time.
More room for illegals.
NAIOP got the memo - the problem is their members are sitting on acres of property they want to build on and pass the vacant building on to investors.
NAIOP is really pushing the building of Cold Storage warehouses for frozen food - those are still in demand.
Take out the elevators and turn them into homeless shelters. Feed them on the top floor and make them climb the stairs. Good cardio.
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