Posted on 06/03/2020 10:24:19 AM PDT by wac3rd
"Scores of apartments could be empty as thousands of renters face evictions after losing their jobs and as millennials in pricey spots like New York and San Francisco flee in search of cheaper pastures.
Major companies significantly downsize, or simply give back their space in favor of remote work. Few tenants will be able to step in to fill their space. A large driver of recent leasing activity, coworking firms, struggle to get new members and are forced to shutter."
(Excerpt) Read more at commercialobserver.com ...
Call me cynical, but I don't see the NYC/state paid salaries, pensions, and healthcare being diminished anytime soon, no matter how dire the financial situation gets.
“millennials in pricey spots like New York and San Francisco flee in search of cheaper pastures.”
That’s just dandy.
Doomsday scenario and also a falsehood for anyone that knows anything about New York City real estate. Every person I know, their company wants them back in the office as soon as possible and are going to Great lengths to make that happen.
I know so many hoping for the utter destruction of New York City here will be disappointed when everything turns out okay, but it’s just the truth :-)
I have never seen a city where so few here live talked about so much. Maybe it’s envy coming from a 2 meal town. I don’t know
I said way back in early march that if they shut down the economy the first to feel this will be local governments. Without people earning spending, producing and consuming, there is nothing to tax.
How about real estate agents who RENT apartments, not those who sell? How will their living be affected?
All they have to do is raise local property taxes and tax everything that isn’t taxed now.
Problem solved!
My brother lives in Ft Lee and works in Mid Town Manhattan. He runs a department of 25 or so.
None of them are going back to NYC. Productivity is way up in his department. And he’s standing by his people and telling the bosses “No.” clearly and often.
Guess what. The bosses are listening.
L
“Scores of apartments could be empty”
Not if they let the market work. If there is reduced demand then the price should fall.
“Every person I know, their company wants them back in the office as soon as possible and are going to Great lengths to make that happen.”
If it is work that has to be done in person that might be true but for people with jobs that can be done remotely then there will not be the same pressure.
Commercial real estate prices are going to take a hit. I work in a Fortune 500 with 18,000 employees. Prior to COVID 95% of the company was home office based, 5% worked remote. Currently only 5% are still in the home office, 95% are working remote. Discussion has already started just how many really need to come back to the home office. Not a lot. We’re probably going the shed the need of 80% of our commercial real estate space.
My soon to be for sale home will increase in value because of this. Right after 911 many people fled NYC and purchased homes in my area. This caused local real estate values to increase. I suspect the virus will have the same affect and expect to see the results once quarantine restrictions have been lifted.
Hope I’m correct.
A lot of cheap real estate for sale in Minneapolis.
Working from home has benefits over and above convenience.
You avoid commute fees (car note, gas, insurance, bus fare, etc)
You can write off a home office on your taxes.
Win, win.
You couldn't get me to go back to a job there at gunpoint. And that was my attitude before COVID-19.
After COVID-19 and the looting of midtown Manhattan, I can pretty much guarantee you that hundreds of thousands -- if not millions -- of other people who were working there before March 2020 feel the same way.
I know NYC is resilient, I lived there for 5 years in Manhattan, working on Wall Street in the 90’s. The City will always have it draw. The issue is like where I live in CA now. How many years of making 2-3x a normal income, just to survive the taxes, fees and costs will you take?
Unless you make $500K in the Bay Area or NYC, there is no reason to live there.
Yep. Not to mention the reduced real estate costs for the employers, the huge reduction in other overhead expenses, and the general increase in the quality of life for the folks working from home.
L
I left. Could not take it. Buying land in GA. House on market in CA. No job yet, but will do the remote thing until I land something.
I have to get out. My wife and I are winging it, both remote workers,
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