Source: BloombergPosted on 01/24/2021 7:27:31 PM PST by SeekAndFind
According to Bloomberg, real-estate data analytics firm Green Street released a new report outlining how the office space market in San Francisco will be the worst-preforming market in the US for 2021. Even though office vacancies in Manhattan are at record highs, it appears San Francisco tops New York City as companies reevaluating their space thanks to the pandemic.
Green Street estimates that rent and occupancy may plunge 22% in San Francisco this year, the largest expected decline of any other city in the country. New York was number two with -17%, Los Angeles in third at -9%. Source: Bloomberg
All of the cities shown above experienced similar pandemic-related stress of people escaping to suburbs and rural communities because of the virus and social unrest, along with the integration of remote-working, which allowed many people in white-collar jobs to work anywhere they pleased.
"San Francisco and New York will likely see a permanent resetting of rents as people and businesses look more toward the middle of the country for expansion," said Danny Ismail, an analyst at Green Street.
"It's unlikely that rents and occupancy will return to a level pre-Covid over the next few years," Ismail warned.
Green Street points out remote-working has forced many companies in major tech and finance hubs to reevaluate how much office space is needed.
Companies that are exiting these hubs are moving to cheaper metro areas, where the cost of living and tax code are more friendly. Some of those cities benefiting from the migration of companies and people are Nashville, Tennessee; Charlotte, North Carolina; Austin, Texas; and Atlanta.
Green Street makes a bold prediction that demand for office space will decline by 15% through the mid-point of the decade as businesses will be more inclined to adopt work-at-home lifestyles for their employees to trim costs and boost productivity.
In a separate report, Goldman Sachs Chief Economist Jan Hatzius said last month to clients that work-from-home will be widely adopted by firms and boost productivity.
I say give all that office space in those high rises to the homeless in SF!
The disease is a mental virus. What to call it? Socialismitis? Liberalism?
The disease is a mental virus. What to call it? Socialismitis? Liberalism?
I wonder about Houston. The oil companies have taken a triple hit. I hear the Chevron buildings are only 5% occupied. That has to be strange with no rush hours.
No. In the graph above.
That’s no one’s business but the turks......
Finally!
Are you saying that TransAmerica is down to 100 persons total? Floor? Whatever. It’s incredible. Hollowed out? Hell, if so, it is vacant.
Those couple of TMBG lines have always stuck with me.
‘Course my vote is that we should change it back to Constantinople, because..... Deus Vult.......
I hope all those Pelosi and Biden voters lose their shirts.
Even Old New York was once New Amsterdam...
Very smart post. Also under their Agenda 21 goals, all the interior towns and cities will be vacated and humanity will be rounded up and forced into the selected cities so TPTB can re-green the country. So nothing currently empty will stay that way.
What I really wanted to say was how come no one notices that if your job can be done from home, then your job can be shipped overseas to anyone with a computer who speaks English and has your skill set? This has already happened to many phone-in customer service jobs years ago. iirc about 10,000 such jobs on England were shipped to India, and even more from the USA to the Philippines. Even digital radiological scans are electronically shipped to India for reading by their blind “doctors”. The rich owners get richer by cutting costs to cheaper labor, and it’s not just manufacturing. Anyone currently working from home is vulnerable.
You’ll have room for backstock.
Dumbsnititis.
I’m hearing some rosy comments about occupancy on the internet,
but I cannot believe it.
Mid year the New World Trade Center Building was supposed to have 85-95% occupancy.
That can’t be true. I don’t believe it.
I had heard about the real estate pricing. Ouch!
I hadn’t heard that Leftist were just relocating.
That makes sense, now that they’ve got the Communist/Fascist
state they always wanted.
Some folks may not like me tossing the C/F name out there,
but in think things are just set to GO OFF around the
nation.
The talk these days displays shades of the USSR and NAZI
Germany. Not good...
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