Posted on 08/07/2024 10:38:34 AM PDT by Vendome
All eyes are on the office sector as the future of commercial buildings in many cities depends upon its success, but the future isn’t looking too bright.
Foreclosure rates on commercial properties have increased 48% from last year, according to a recent report from ATTOM.
This rise in foreclosures is part of a larger overall trend. After reaching a peak in October 2014 with 889 commercial foreclosures, the numbers fell to a record low of 141 in May 2020 and then began rising again.
Declining office performance likely attributed to the year-over-year increase in commercial foreclosures, said Joe Brady, former head of real estate for Walgreens and CEO of Americas at The Instant Group, a global leader in agile and flexible workspace, development, and consulting.
“In the office sector, things are going to get worse … much worse … before they get better. We are watching a slow-moving car crash. Put your seatbelt on,” Brady said.
When office patterns change, it affects retail shops and restaurants in the area, causing a strain on these businesses.
In June, California had the highest number of commercial foreclosures for the month at 214, according to ATTOM. This was a 10% decrease from the prior month but a 289% increase from last year.
(Excerpt) Read more at themortgagenote.org ...
Retail vacancies in San Francisco hit a new record in the second quarter of the year, with empty space hitting another peak around the marquee Union Square shopping district, according to real-estate firm Cushman & Wakefield. https://www.sfexaminer.com/news/business/san-francisco-retail-vacancy-rate-sets-yet-another-record/article_34d8add8-4f90-11ef-b59f-7b1c7dce5500.html
Whoever figures out how to efficiently and affordably convert empty towers into condos will make a mint.
Why can’t they put the illegals in there? Not cushy enough?
Since many of the rooms would have no windows it would be just like prison...
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