Covid showed employers that working from home saves a ton of money.
1. Rent. Super expensive in NYC and other places.
2. Commute time. Lost time.
3. Productivity. You know who does what when they work from home.
4. Avoid litigation. No sex harassment or racism claims if on zoom and at home (u less it’s the New York Times).
So there will be a pivot from commercial rental to residential. Many of these empty commercial buildings will be converted into condominiums. This will flood the market and drive down residential values.
Likely looking at a 2009 style banking crisis soon.
I agree with all of your post except for the conversion.
The logistics are really bad for at least 90% of the commercial buildings.
—Many are old and are not up to code—just cheaper to tear them down....
—Not enough bathrooms for residential—that means major plumbing overhaul issues—there aren’t enough plumbers in the country to do all that work.
—Many buildings have too much interior space—residential needs windows.
—Why should anyone live in these high crime high cost cities again? Lol.
They are going all the way back to the 1600s—agriculture.
Not always. I'm sure you have some employers who have relocated to red states. Florida and Texas are becoming huge. While people are continuing to leave NYC.
There are some drawbacks to working from home.