Posted on 03/25/2024 1:35:01 PM PDT by Heartlander
It would be fun to watch them trying to evict homeless and illegals from Dump Tower.
Conversion is NOT cheap, so it requires loans.
And then what? Buying commercial buildings no one wants to work in located in cities that people are leaving and are crumbling isn't exactly a good buy, no matter how cheap. The entire American landscape is changing as people are fleeing the cities and moving to rural areas.
China is currently mid-crash in its own real-estate crisis. One company, Evergrande, collapsed with $300B in debt. That is half of what Lehmen lost ($613B). 34 of their 50 largest developers that issue bonds are in default. Chinese development bonds have lost 87% of their value in the last 24 months. China will NOT be passing the US Economy any time soon. The surge everyone saw over the last few decades was going from undeveloped to developed. It is not repeatable. China is broke from trying to bail out their own economy.
https://www.npr.org/2024/01/30/1227554424/evergrande-china-real-estate-economy-property-collapse
btt
“The structure of an office building is unsuitable for conversion to apartments. There is not enough water or sewer facilities, and the ventilation systems are all wrong for subdividing into smaller cells controlled by more thermostats.”
That’s total bullshit. Tell that to the people who worked there and spent up to 60 hours a week in those buildings. If workers can be there that many hours a week, then so can the so called “homeless” or “illegals”.
China’s building an expressway and bridge across the Darién Gap and already has thousands of Peoples Liberation Army troops coming in every month. Once the have imported a few million Chinese citizens they will put all the commercial real estate to good use.
Most of the loans are based on $ amounts before the big spike in inflation. Since we are on the way to $120,000 loaves of bread, those loans are going to be easy to pay off, even at 20% occupancy. /mostly joking.
> The problem is that 250K is a lot less than one day’s working cash for most medium size companies.
Then it behooves them to put some effort into choosing which banks they use to do business.
That is the problem.
If all medium size and large corporations put all their money in the very largest and most secure banks then the medium size banks will need to be bailed out....
As I said—it is a mess.
My bet as well.
I’m guessing your degree is not in commercial/residential hi-rise buildings. The building mains, the utilities & HVAC distribution requirements are in no way similar.
Thank you, Mr Obvious.
I should think that stockholders who own REITs (Real Estate Investment Trusts) will take a bath, if they haven’t already.
BFL
Long term, a lot of cities are going to empty out. Remote work is much more economically efficient.
Think of all the savings in fuel, and other expenses.
Here’ an idea. Maybe some of us should become “squatters” in Trump Tower??!!
Unsuitable for conversion to apartments Americans want to live in, true.
Conversion to taxpayer-funded dormitories for illegals, complete with communal bathrooms and no need to cook government-provided food? All of those class B office buildings will work just fine - and government subsidies will keep the CRE market afloat until they can figure out some new scam to trick investors.
I think it ebbs and flows. People are holding real estate in their portfolio. In a few years it will be advantageous to sell the property. Then it will come back around to people holding it again.
“Happens how many times a century?
Taxpayers getting the shaft?”
Happens every April 15. The filth.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.