Posted on 08/26/2024 8:16:16 AM PDT by Vendome
A combination of high interest rates, lower office utilization and the retreat of major institutional investors from San Francisco’s commercial real estate market have conspired to create a once-in-a-lifetime situation.
While most eyes see a crisis, a particular set of bargain hunters instead see an opportunity they cannot pass up.
In the last two years, office buyers have been snapping up recently renovated buildings that, in some cases, are going for a quarter of the price sellers paid pre-pandemic.
(Excerpt) Read more at sfstandard.com ...
Cui bono.
And I’ll bet its not just going on in SF...
High interest rates???? Go re-live the early 1980’s.
California is tightening its grip on Jello.
2008-2012 was a beauty, easy money. The timing is harder this time, staying out of it.
Nothing will allow for any return on investments until there is a change of politicians and their supporters. Hopefully this is part of their investment program. If not, they they will fail!
Has SF real estate reached the capitulation stage yet?
The underlying problems have not been addressed, in any form.
Capitalism is great in that everyone is free to lose their money.
It's not as if the wanton and willful destruction of US cities by various proxies of the Demagogic Party Deep State was done for any reason than the pursuit of absolute power and vast wealth.
And of course, this wouldn't be possible if there weren't a lot of gullibility among their rank and file.
As they used to say in the stock market, never try to catch a falling knife.
These fools are old school, do they realize that the commies are in charge?
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surprised that no chyna invetors are showing up in SF commercial RE
Those with cash and patience are taking advantage of the “bottom of the market.”
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Notice they put those in quotes.
they always got to CYA by backing off their sensationalist (and fraudulent) headlines, and this case they even backed off by putting “bottom of the market” in quotes.
Otherwise, someone could invest millions and see their real estate values tank even more and sue this rag
My first mortgage in 1987 was 11%, and that was a good rate.
Cantillon effect. The rich really do get richer when easy first access to money.
Buy it cheap. Grease a politicians palm. Sell it to the Government for a windfall.
there is no bottom as long as money is easy.
Those with cash and patience are taking advantage of the “bottom of the market.”
As they ALWAYS do. Better believe if I had the cash I’d be mopping up some skyscrapers for pennies on the dollar. Of course pennies on the dollar are still 10s of millions of dollars.
the major forces, such as work-from-home, which have led to the demise of center city skyscrapers are mostly irreversible, thus “investment” in these white elephants, regardless of how cheap they may seem to be, is likely to never pay off ...
Yeah, but the price of the home was reasonable with that 11%. You weren’t paying a 3x falsely inflated assessment.
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