Posted on 03/29/2023 8:57:44 AM PDT by Kaiser8408a
US metro office vacancies hit an all-time high in Q4 2022 and office properties values began to decline as The Fed retreats as it fights inflation.
So much money printing. Its The Fed’s claim to fame.
(Excerpt) Read more at confoundedinterest.net ...
Urban America is unlivable and the technology is making centrally located office complexes unnecessary.
Progressive Insurance has gone to almost entirely work-from-home. Drive by their two big office buildings by the freeways in Cleveland suburbs during business hours, see maybe six or seven cars in the spacious parking lots. They probably would like to unload the properties but doubt there are any takers.
Downtown Los Angeles high rises are running on about a 30% occupancy rate at best. Two defaulted on roughly $750 Million in the last couple weeks, a whole lot more are prepping for Bankruptcy
Cry me a river.
My daughter is working 100% from home. Her company closed the office space. Occasional meetings are held in hotel conference rooms.
The commercial real estate bubble has already popped but the pain has not really set in yet.
Predictions about the overall damage to the economy this crisis will cause are all over the place, but it won’t be good. The numbers are staggering and few are considering the real implications for urban areas where small businesses that relied on these workers to stay afloat are in deep trouble.
This is all a “tax base” issue as well. Fewer workers = less sales tax so the “trickle-down” effect is going to be brutal. Management companies that owe massive mortgages on these are NOT going to make the tax payments and they face certain bankruptcy because cities still assign massive values to the properties despite no occupancy/tenants.
In many places you have progressive city councils demanding that these commercial buildings be made into apartment buildings.
Note of caution to Carl, if Carnival Cruise Line can come back strong, so can commercial real estate. You might want to close out now before companies follow Musk and start bringing workers back to the office.
Not say that will happen, but that is certainly an issue right now.
Ccl was around $40 a share precovid, sits under $10 right now.
If a commercial building faces foreclosure in a city of empty buildings does anyone hear....
I just heard they are booked up. Numbers won’t hit for a while.
True. What was going to keep these urban areas from joining the likes of...?
Atlanta
Baltimore
Buffalo
Camden
Chicago
Cincinnati
Detroit
Hartford
Houston
Jacksonville
Los Angeles
Louisville
Madistan
Milwaukie
Minneapolis
Modesto
Nashville
New Orleans
New York City
Newark
Oakland
Philadelphia
Pittsburgh
Portland OR
Rochester
Seattle
San Francisco
St. Louis
Stockton
Trenton
Troy
Worcester
etc.
The cities that have had some gains over the last few decades were not because they offered anything special, they were just a better choice than the worse alternatives.
Did you check CCL news?
Best of luck to you in getting work!
Hubby’s building (large insurance company) closed down and went to at-home/remote work during Covid — & there are no plans on re-opening at all now.
Probably 600-700 people were working/visiting there each day, now it sits almost completely empty (minimal security/custodial staff). Doubtful that the building will be sell-able at any sort of profit, as there are many similar buildings in the area, also empty/closed down.
Regular staff/group meetings are held remotely, larger share-holder type meetings are scheduled at hotels or resorts.
Working from home is not ideal for him, considering our family situation and lack of any real office-type space, but we’re making it work for now. Considering getting a half-size shipping container and making him an office area in the backyard. Would do it in an instant if the company would pay for it — HA!!
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