Who is going to purchase CRE in major cities?
Remote work isn’t going away.
Neither is crime and inflation.
I’ve always wanted to “squat” in one of those pricey commercial buildings for free. Maybe get a penthouse view overlooking the city. Yeah, that’s the ticket.
The cratering of the urban core is an interesting obstacle to the scheme of herding the populace into confined central cities.
Why not house the illegals and homeless drug addicts in those buildings? That would get them back to 100% occupancy. I’m completely serious.
There are some investors buying at a 50% discount. Wonder if that is enough of a discount? Time will tell!
2/27/24
Canada Pension Plan Investment Board has done three deals at discounted prices, selling its interests in a pair of Vancouver towers, a business park in Southern California and a redevelopment project in Manhattan, with the New York stake offloaded for the eyebrow-raising price of just $1. The worry is those deals may set an example for other major investors seeking a way out of the turmoil too.
I know that only applies to office related work.
Been WFH since March 2020 and love every day of it. I've never missed being in the office.
Exactly. And who needs the high taxes, liability, capriciousness and general governmental dysfunction associated with the big cities?
You nailed it.
In our economic and social system, nothing is immune, big or small. Think of all the things that have gone the way of the dodo bird (random list)....
-local drug stores
-the landline phone
-pay telephones
-local hardware stores
-the IBM Selectrect typewriter
-the IBM mainframe
-countries
-churches
-inner cities (now, the hood)
-passenger trains
....and so many, many more.
Nothing is immune, and it will not stop. In fact, it will likely accelerate (i.e., AI). No matter how big, prolific, or small, it can disappear—sometimes quickly and sometimes slowly (including us).
It will be reworked to provide luxury condos to illegals.
“The brutal reality of plunging office values is here.”
There is a silver lining though. Significantly less tourist dollars and diminishing tax revenues to feed these filthy big city kleptocracies.