Office Building FIRESALE In Economic DOOM SPIRAL
ฝัง
- เผยแพร่เมื่อ 23 ก.ย. 2024
- Krystal and Saagar discuss office buildings losing value rapidly in the US.
For support connecting your locals account, contact support@locals.com and CC breakingpointspremium@gmail.com
To become a Breaking Points Premium Member and watch/listen to the show uncut and 1 hour early visit: breakingpoints...
Merch Store: shop.breakingp...
To listen to Breaking Points as a podcast, check them out on Apple and Spotify
Apple: podcasts.apple...
Spotify: open.spotify.c...
#news #politics #youtube
70% off gives us an idea of how overinflated prices actually are
...and then they'll turn around and feign Bankruptcy, and convince the Government to buy it all off of them for "near retail value"
Not really. This isn't inflation. This is the result of demand falling off a cliff.
You mean they are lying about the value of their real estate? For shame, guess the NY DA is going to have them all in court any minute now.
Thats just inaccurate
It's all just retail - shirts that cost $1.24 to produce being sold for $45
I cant afford a house. But maybe one day I'll be able to afford an office building and I'll build a family within the cubicles 😂
Imagine kids building fortd with cubicles loo
Would be perfect for starting your own cult.
It's illegal to live in an office unless you meet all residential building codes.
@@talyahr3302 this actually sounds kind of dope lol
This is why they desperately wanted to force workers back into the offices after covid.
It’s called adapting. As soon as they told workers they can work from home for a period of time, that just created a benefit that some businesses can now offer to the employee. Now companies are dumping their expensive office spaces and having the whole team work from home and the good workers are jumping on the work from home positions.
Companies that are trying to force employees to go back to the office now have to compete against companies not having to pay for office space and for the employees that can work from home at other companies. This is the new reality of office jobs, and there’s no going back. Companies need to adapt to that reality, or try to claw their employees back to the office and lose their team and run higher overheads than the companies that adapted.
It’s not personal, this is business
@@barnabusdoyle4930yup.. But how many times you VOTED?? 😂😂😂
I was just about to type this. They also want the control and micromanaging as well though.
@@barnabusdoyle4930 well put. I'm one of those who's willing to take a pay cut to work remote and live in a cheaper city. Companies can save on office space and salary for a negligible productivity change. It's a no brainer. RIP offices in overpriced urban slums.
won't someone shed a tear for the banks and poor investors??
Your money is in those banks and you are probably an indirect investor of those funds. Unless you have no money.
Nice lol
Pension funds will be affected by this also.
@@benw1620I don’t know a single person with a pension
@@MurglerThis is the real reason we'll never fix our economy. To do so will hurt a generation of people's retirement options without major government backstops
We, as a society, need to stop allowing the billionaire real estate investor class to destroy our economy.
It's almost like we could vote for candidates that don't put billionaires first but choose not to
And Joe ..don't forget joe
@@chrisrhodes2the billions invested by the billionaires ensure the propaganda is so thick the poor see them as heroes.
I really wish people would stop being divided on cultural/partisan lines and just agree to organize against this crap.
@@chrisrhodes2 Its almost like you forgot that the two major parties block ballot access for any other relevant canidates
Repeal whatever laws that prevent commercial buildings from being converted to residential apartments. NYC desperately needs it.
Local zoning, which has always been a problem and contributes to the underlying costs of housing.
Not apartments. Condos. Let people own something.
Oddly, theres a big window issue. Not that people CANT live in a place with no windows, but it would an unprecedented change….they should still do it, though. I agree.
Mostly it's building code. They don't have the plumbing, etc., and residential rents for less per SF, so the investment in a renovation would usually be to lose less money, not to make a profit...
sorry but solving problems is not something democrats do. they think solutions are racist.
Tax payers about to pay for another bail out?
I bet that’s what will happen
Of course
Yep.
We take every loss of the elite and enjoy none of their benefits.
th-cam.com/video/w9dqoVy6szc/w-d-xo.htmlsi=RVV9kGzv8FEZZef0
2019 was peak office culture, globally.
Cities still serve the people to the billionaires on a silver platter.
Nah office culture was already on a steep decline before the pandemic due to automation of data entry jobs, customer service jobs. The 90s and early 2000s was peak office culture.
@@joshuaortiz2031 nah if you promote that argument then you are ignoring Office Space (the movie) which roasted office culture of late 90s/2000s. The actual Glory Days of office culture was probably the 50s/60s when they had cigar rooms, everyone had a pretty secretary and there was more money than they knew what to do with. "The Apartment" and Mad Men capture those times.
@@K4R3N I worked in an office during the early 2000s. 1950s was probably a better era for guys, better pay, etc. but it was not so bad during my time.
@@joshuaortiz2031 yeah I worked in an office from 2000-2019. Early 2000s I worked with a great group and still keep in touch with some of those guys. It got stupid after 08-09 and never really came back and then COVID just slaughtered whatever office culture was remaining.
Let me guess, the corporations have already vacated the commercial market, and it will be the 401k investors who lose all of their client's money.
And i bet they VOTED a lot.. 😄😄😄
Most commercial real estate is owned by corporate trusts and large scale investment funds. Selling interests in buildings takes a long time so it is highly unlikely corps have exited and if they did, they will have lost a ton of money doing so.
No more bailouts. The market needs a hard reset/correction. We need to stop the printer, allow the hardships to happen so demand goes down which will drop prices on goods do to over supply. If we keep printing money to try and keep the economy afloat then we are just going to inflate the cost of everything
This is the weirdest approach to this topic and I’m convinced people are just parroting narratives at this point. The money hungry corporations are the only constant in your equation. Why is it that just because people in the country has more money now companies are just expected to take more from us? Why is it that billionaires are entitled to more money simply because more money is printed? The value of their wealth doesn’t go down necessarily if prices aren’t going up, ie 10 dollars still buys 10 dollars worth of stuff. But because we just assume the rich should take more simply because we have more we blame the government while the rich continue to get richer no matter what the government does because the rich know how to cover their bases through lobbying and insider trading. So there’s actually 2 constants in both sides of your equation , the rich getting richer, and citizens just willingly accepting higher prices simply because we have more money.
To sum up my point… it’s not okay for businesses to want to extract more money from our wallets simply because we’re a few hundred dollars richer that’s a “trickle up” effect in both sides of the economy that we just willingly accept.
no instead the rich will send the world into war.
Just wait until the dollars in BRICS countries start their journey homeward bound ......
@@KeefChief_ also it is the governments fault because they pick the winners and losers, either through bailouts or extreme regulations. The market doesn't get to decide. With the bailouts we are devaluing our currency, and causing more money to chase goods, which causes increases.
A company doesn't raise its prices to just make more money. They raise their prices because their cost goes up. This is why the competition has to raise their prices too because their costs go up. If it was just because of greed, a competitor would enter and take their business due to more competitive price. But when the costs of raw materials go up, cost of health care for their employees, costs of transportation goes up, businesses have to raise their prices.
If employers want to force workers back to the office, they should be required to pay for the commute time and whatever their employee uses for transportation.
Really.. 😂😂😂😂😂😂😂😂
Why should only office workers get this benefit?
@@SurmaSampo I think the employer should pay for every moment that they ask of their employees, in any job.
@@penabler So you want a system where employees on hourly rates try to travel as long as they can to get to and from work, and employers go back to the idea of factory workers living in shared bunks onsite.
That is the natural effect of the incentive system you just advocated for. It is important to consider the effect of turning travel time into paid overtime.
This also doesn't take.into consideration the inflationary effect of these costs and how it just incentivises outsourcing and automation.
@@SurmaSamponot hourly, just pay for the cost of commuting. That’s what they do in the uk
A correction NEEDS to happen and a bailout should not be an option. No more tax payer money to bail out bad behavior by banks.
Banker: Sir, we're losing hundreds of millions of dollars on our real estate.
CEO: Well, squeeze the peasants. I need my bonus. I just bought an island.
Nah.. The almighty Federal Reserve GODS will do their magic.. 😂😂😂
So sick of corporate welfare.
But how many times you VOTED?? 😂😂😂
Who assesses the values of these buildings? Like 600 million to 50 million makes it sound like there was significant dishonest lead up to that valuation. So now they can get a tax write off. Sounds pretty fishy.
The billionaires didn't mind - they won't miss it. The people own no cities and are increasingly homeless. Victory for the conservatives.
I mean, every single contractor and commercial real estate owner in the world over-values their properties. Just make sure you don't have orange hair, or people will try to put you in jail for it. (Despite everyone doing it.)
Trump will get sent to jail and fined for this.
Developers that did this as well as appraisers. Not a change of consequences.
Change in behavior lead to a drop in value…this has been in the works for years.
Louis Rossman has been saying that for years.
Louis Rossman was the harbinger of this 3 years ago. Credit where credit is due.
GERALD CELENTE TOO
There is not a single thing the guy doesn't complain about
His NYC commercial real estate series was epic.
Exactly, I remember watching his videos during the pandemic.
@@lakorai2 I remember when the whole "Trump overestated his real-estate holdings" thing broke. I'm just like, go watch a Louis Rossman video where every property he looks at is over stated. Those NY courts are probably backed up for YEARS prosecuting all those real estate people. I assume.
The tallest and largest (also older) office tower in Fort Worth just sold for 91% off the last sale. $137.5 Million down to $12.5 million. WOW. And out Downtown is actually considered "healthy" too.
Healthy? It's a bizzare town by any normal metric. A bunch of tiny houses spread flat over an enormous area, and a few commercial skyscrapers for no reason whatsoever in the center. That's not how healthy towns look, and not how they grow. If the same commercial space was spread around along with where the people actually live, it would not only make living more comfortable, but also would make the spaces themselves more adaptable.
Skyscrapers are only needed when people are living in high rise apartments as well, and even then bunching them up in the center is just bad planning
@NJ-wb1cz Your obviously ignorant, biased, and don't read and comprehend before commenting.
12 million is still over valuation.
@OT_concerned_citizen No, it isn't. It was last appraised at $108 Million, but sold a few years prior for $137 Million. Still way below value.
Most of the companies letting these buildings be taken by the banks have tens of millions in cash. So the bank takes the property they owe $300 million on, and they go to one of these auctions and buys a property for $40 million cash. These companies are making out like bandits in all this.
Take a deeper dive and find out how many of these "low priced" office buildings were already depreciated and were financed with tax credits in the first place. Then we'll bail them out. So, triple dipping?
😂😂😂 lemme guess ...more apartments nobody can afford
Yep. Of course they're apartments too, not condos. Can't let the peasants own anything
Rooms with shared common spaces. It’s “more efficient.”
No matter how many times employers called it "team camaraderie", no one was ever fooled. This was always the reason they wanted us back in the office.
As they used to say, "If you owe the bank a hundred thousand dollars - you're screwed.
If you owe the bank a hundred million dollars - the bank is screwed."
Funny how people say "just convert it to housing" like it's just that simple lol. First, you have zoning to deal with. Next, you have to ensure that both the site and the building have the infrastructure required to support residences which is not likely leaving you to upgrade power, water, sewer, communication, ventilation, fire suppression, and more (many will require an engineer). Then, you have to divide the available space up into residences that meet building codes (building, fire & life safety) which requires a sizable architecture firm to get fire separations and access requirements designed correctly. Once you have an idea of what you need to do you then get to wait for 6 months to a year for your design team to draw plans and another 6 months if you're lucky for the building department to review the plans and verify the proposed project meets applicable codes. This is BEFORE you even start construction. It's insanely expensive, time consuming and exactly why they don't just "turn it into housing". If it was worth doing, they'd already be doing it.
We need to stop making/letting every W2 employee from contributing 6% of their salary into their 401k and having that money get thrown into our dumpster fire of financial system....
You only put 6%? I max out mine
Hold on, let me grab my "tiniest violin in the world" for the banks and investors
A lot of those buildings cannot be retrofitted as apartments or condos. They are essentially going out to have knock them down and rebuild them. I mean, just common sense..think about the number of bathrooms that need to be added per floor, the number of kitchens that need to be added per floor and all the plumbing that needs to change and electrical needs to change.. maybe some can be hollowed out and rebuilt, but older ones no way.
Teleworking is progress and progress has consequences....
So how many times you VOTED?? 😂😂😂
The other side of this is rural area property values have been skyrocketing, as people are fleeing the city.
It’s a write-off for any company. Easy example of why most companies or corporations don’t pay any taxes
idiotic comment. only people pay taxes, any taxes on commerce are paid for by the consumer.
@@branchingoutnurseries4403 only because people let it happen that way. No one is made to purchase from said companies or corporations. Keep with your Uber capitalistic thoughts. That’s one of the reasons the country is going to shit
@@ericjanke2961Taxes are uber capitalism?
@@SurmaSampo No. thinking that companies can just raise prices because they have to pay taxes. Doesn’t work that way. Only way companies or corporations can raise prices is if people let them by paying more. If people do not buy their stuff the price will come down. Big business has just snowballed people saying if they do have to pay taxes they will just pass it along to the consumer. Wrong.
@@ericjanke2961 Taxes apply to all suppliers competing in a market so they all raise their prices at the same time. This may well mean fewer sales in some markets, but if the margins are low and demand is inelastic (such as energy and food) it will instead displace spending in other markets. The net effect of tax increases is similar to interest rates increases.
It is also important to understand that price increases also happen in the supply chain of retail products and services so there are multiplier effects to increasing costs to all businesses. This and for other practical reasons is why businesses are not taxed on revenue nor capital.
Remote work is not going away and we no longer need anymore office space.
Carefully what we wish for if I can do it from home I ca do it from India
You are a good thinker.
@@VetinCloud i bet you VOTED a lot.. 😄😄😄
@@jonathan7249 nope just seen it live
@@VetinCloud you ain't seen NOTHING yet.. 😄😄😄
One way or another taxpayers are on the hook for all this. Senators will make sure of this.
I can't buy a home but I can buy an office. What a time to be alive.
The conversion of office space to apartments is INSANELY hard to do.
Only people without absolutely no basic construction knowledge will suggest these conversions, just to think about permits alone is giving me nightmares
It’s basically a tear down and rebuild. Such costs vs. what the resulting housing inventory can sell for should be factored into pricing for such a building.
This is why, for the last year, the financial cable channels have been saying that rate cuts are just around the corner. It has been nothing more than wishful thinking. Anyone looking at the actual numbers, knew that no rate cut was coming, but look at Fox Business, or CNBC and last October, one would thing that they just needed to hold on for a month or so longer.
2008 all over again smh.
They have already converted many office buildings near wall street to residential buildings..
Not anywhere near enough
@@jer1776Agree, but unfortunately, it’s really expensive to do those conversions. Many developers are sitting on the sidelines waiting for fire sale prices on commercial real estate properties.
TURN THEM INTO RESIDENTIAL RENTALS WE FUCKING NEED IT
Lots of red tape in your socialist paradise to overcome
4:13 You won't get it anyway, and even at higher prices brackets it can be not worth it. These are the things governments are typically engaged in, rebuilding infrastructure. But instead, 900 billion every year are spent on wasting them on not producing anything of actual value for the money paid
Sometimes you are worse off. I know that some buildings try to cut corners by not redoing the series electrical and plumbing into a parallel system. Sometimes you'll have rooms made without natural light included. On top of it all they will be over priced as the location includes rec rooms and such.
Great idea but it would never work based on the way they are set up. The Plumbing and electrical would have to be completely redone which would probably cost more than starting from scratch
They will start at 2k for a 1 bedroom
AI is going to doom commercial real estate in large cities IMO
How?
@@Ralph-i5m Many clerical office jobs will be replaced by AI.
@@Ralph-i5m AI will automate most office work
Using it to screw us in the most efficient way possible
No PMI for these guys???? I remember having to pay an extra $200 a month to protect the bank, not me...
Problem is not the rates its the prices.. they are artificially too high due to supply. Those stuck in a sub 3% mortgage wont sell keeping supply low. Even if rates drop now, there will be so much demand that will drive prices up even higher. Its a loose loose situation. The sub 3% interest rates caused a lot of long term damage to the housing market.
Today in late stage capitalism...
The federal reserve is not capitalism
Food wholesaler in nyc here. Nyc especially Manhattan has not recovered even close to former levels. Between the tourist decline from 200k a week to 60k a week to the lack of money in people's pocket to the perception of crime...... I'm moving away
Commercial real estate is not a bubble, good properties have no problem selling. Its the old, undesirable ones such as big offices that have less value and zoning often makes them difficult to repurpose. We are in a high inflation environment which helps real estate, and as soon as rates go down prices go up.
Given the hell NYC has become, no one wants to work in Manhattan and so buildings are empty and at fire sale prices.
Car and home affordability is completely rediculous.
In New York there is more than 95 million sqft of vacant office space.
And yet for a small business to rent commercial space rates remain prohibitively high. They are using this real estate for tax write offs and as financialized investment assets, hence all the vacant real estate just lapsing into decay across the urban landscape. You bet they made some kind of money off the "loss" when they sold these buildings. They are laundry money and avoiding taxes.
I work for a fortune 10 company and they’re putting their foot down. Hiring and promotions will favor people going to the office.
For what reason? Do they have legitimate evidence for the benefit?
@@SlickSimulacrum
They do not. No such evidence exists. In fact, all the evidence points in the other direction.
they can put their foot wherever they want. they are fighting the fed and will lose.
@@anthonytwohill9726 , That did seem to be what my previous readings suggest.
Bosses as it turns out, are fickle, shallow, infantile, insecure, and petty.
@@SlickSimulacrum
Correct.
All the data shows that productivity is higher while worker engagement is also higher. It turns out that people reward employers who allow them autonomy. Not to mention that employees who do not have to commute are fresher workers. Even Marx understood this.
Interest rates are slightly above normal. It’s housing prices that have become unaffordable. I couldn’t afford to live where I do if I didn’t buy my home a decade ago.
People don't realize how difficult it is to convert office buildings to living quarters. The infrastructure just isn't there, and most of renovations will take tens or hundreds of millions, making it not feasible for most people except the rich, and they already have rich people places
City and public pensions are screwed. CRE at best is worth 50% declines nationwide.
Get ready for the “too big to fail” bail-out lol
City budgets in general. These high density commercial tax zones totally subsidize suburban sprawl. Especially single family housing. Most cities were underwater already, without commercial real estate tax…
@@blakereid5785 most city and state pensions are making wildly aggressive investments as is because of how much they over promised. Their CRE losses will be nail in coffin. States like California, NJ, Connecticut, NY are all toast. The reality is that they all knew remote was changing things for the last decade but they were slow rolling it until COVID, that cat is out the bag now. Of course we are clearly going to have a nasty recessions here soon so maybe they'll start forcing people back in
No bailouts.
1 like = 1 chord on the sad violin 🎻
Use a banjo
What do you think is going to happen when you lower interest rates to home prices?
Right now you might have one or two buyers per home.
After you lower interest rates you'll probably have five or six.
That will raise the price of the home so fast you won't even know what hit them.
Higher homes equal higher taxes.
Best thing that could happen is people can save their money and collect 5% until they build more homes
This is why Hochul put the brakes on congestion pricing...
its an amazing new world. democrat executives just wave a hand & stop enforcing laws. immigration laws, tax laws. all laws are only valid based on the politics of the executive.
I doubt she has that much foresight.
If you review the Great Depression, you saw a 90% decline in housing values from 1927 to 1939. During that time period you had several "False booms" or "Sucker booms" when the drop in price stopped, investors poured money into that real estate, then the decline in value restarted.
The real estate record did not stabilize till 1939 after ten years of decline.
One of the problems with bubbles is it takes twice as long to decline as it took to boom, so the boom from 1922 to 1927 was five years, but the subsequent decline lasted over ten years.
Please note the 90% drop ignores the devaluation of the Dollar from $20 to an ounce of gold, to $35 to an ounce of gold.
Only way to make homes affordable is to make more.
Just force banks and private equity firms to sell their inventory. So many houses have been held since 2008.
Talk about all the Government office space left vacant!
We're paying for that.
Ground level store fronts are closed & not paying rent.
Call me crazy but I hope this contributes to deurbanization and people start to spread out more into smaller communities across the country
Not like their opinion matters deeply but do you believe those small communities want ppl from big cities moving there? I mean honestly?
@@KeefChief_I can think of many areas just in my city that would benefit from a slight increase in population. Do you think people have such animus they would actively say “I don’t want people moving here?”
Nimbys vs. Lennar Homes battle is real rn in small town America
I've been hearing of impending economic doom for years now, and all I got was more expensive groceries. Stop edging and just bust already, god damn. Get this shit over with already. All talk and no action, smh
There should be a bill providing federal funds to convert empty commercial/office buildings into housing.
It is not rural and suburban peoples responsibility to pay for cities
@@peterroberts4415 Thats a very simple way of looking at things. Housing prices need to come down across the board and more supply in cities will lower them everywhere.
@@peterroberts4415it all goes into the same pot though and are you assuming that the city people aren’t paying a vast majority of it since it would be taxed and there’s more people in the city. This mentality is partly why this country is declining, don’t care about your fellow citizen if it doesn’t benefit you huh….
The 3rd tallest building in Cleveland recently sold for only 54 mill. Directly across public square from sherwin’s new headquarters, which has been immediately devalued. Big time bad news for sherwin and downtown Cleveland.
This is the inevitable fate for private equity held residential houses as well. Theres a fatal flaw in artificially keeping the price up, its the fact that an empty building is not a cost-free asset, its a money sink. Buildings wear and tear all the same regardless if people live in there or not. Thats why traditional condos tend to have tenants before the houses even have real owners, and landlords prefer buying condos which already have tenants inside.
Thanks for sharing
Time marches on. We didn't shut off the power grid to keep the lamp lighters employed, we didn't shut off the internet to keep more libraries open, and we're not going back to working in the office just to prevent office building foreclosures.
Employers may decide otherwise. We will see.
Good, commercial real estate laws are a mistake. Bankrupt them all, buildings can become residential after.
Office buildings are overpriced at 70 percent office. The actual value is the L and value so thar it can be demoed and replaced with other types of structures particularly apartments.
I see this issue first hand in WA sate. I see all the empty floors or sections in the building that are empty and have been since 2020
If becoming a professional that works at an office requieres a certain level of preparation now out of reach do to the cost of education, if the cost of facilitating these white collar workers are increasing in office space, and if more consolidation of white collar firms decreases the amount of firms willing and able to pay the rents …
How would demand for the spaces come back ? …
It’s like an economy is sustained by the amount of participation by steak holders and the distribution of the resources inside the same system
And can’t be modeled only on the profit motive for a few firms ..
Like if only a % of % of the economy can participate
What economy is there for assets that require much more participation in its function more over than just profits incurred because of inflated pricing off of artificial means instead of capacitance of the market to support it..
Regardless of how inexpensive or cheap the commercial building is, it's worthless without tenants. Land or property by itself has no meaning unless you can find a profitable use for it.
Nashville is also about to have a rent crash. So many open spaces that are vacant that tons of buildings are going up for sale
Well Blackstone has moved on years ago to single family homes. That is an asset class that will always see tenants unlike the wfe trend that has impacted pffice buildings. So expect regular people to pay for any commercial real estate losses incurred.
Who would want to live in NYC if they were remote or didn't work in the city?
This is a good thing. With remote work we do not need all these useless office buildings. Eventually this will make room for more housing in cities that are really struggling with skyrocketing housing costs.
I will explain the rationale for buying Comercial realestate at this time.
Building A was valued at 10 mil in 2020
You buy it for 3 mil in 2024
The value recovers to six or seven mil.
Any kind of recovery helps the buyer.
It's like people who buy up stocks in a downturn.
Cities need to rezone this! What a mess!
At least we won't see sheriffs evicting homeowners like in '08. Today the visuals will restricted to showing numbers on balance sheets.
It is ridiculous the way they priced these assets during the so called boom. Every pro forma statement I looked at had pie in the sky projections with no margin for error or safe landing. Numbers went out the window and all of it predicated by on asset appreciation.
watch very closely for Big Banks to fail in the near future. Look at Bank's short positions on Silver. Some have huge short positions that become a very big problem for them as people are wanting to take delivery on physical silver.
The only way this gets fixed is you pay people better and get them back in the office.
That's why I bought a place when I did; things don't look to be getting better any time soon and even when they do it's not like they'll be better especially depending on where you live.
When you have a 500k mortgage it is your problem.
When you have a 500m mortgage it is the bank’s problem.
Biggest reason for office space surpluses: Overbuilding. Converting office space to housing costs $ 1000+ per square foot, it will NOT result in affordable housing. It will result in astronomical HOA fees.
Why do people let sellers off the hook for selling to corporations or investors. The fact is, it takes two parties to transact real estate, and when given a choice between a family of 4 looking for their first house and an investor willing to pay $50k over asking, well what would you choose?
The average person DOESNT GIVE A FUCK about commerical real estate when residential real estate is 200% what it was 5 years ago
Forget the banks, cities rely on CRE for more revenue than they should. It's been a way to mitigate population loss... a tax on commuters, effectively.
This has to be why the border is open. All the commercial properties will be converted to residential
What border?
@@thyslop1737 southern
Fake crisis fake issue
@@Shmuk-bn7ef okay and if its not, my hypothesis is that theyll all end up living in empty office buildings when the commercial real estate market crashes because of remote work/ai/economic crash as a way to save that sector of the economy
@@davidnevolo4402 Again, what border? If you can limp you are in.
there could be a silver lining here. small mom and pop stores might be able to purchase their buildings, drastically decreasing their overhead costs.
Up to 70% off, "up to" being the key phrase. Office space is not desired or needed, mostly because of people working from home.
"Buyers" 🙄
This was NEVER planned at all, no...
How is it "up to 70%" when the first example cited is Blackstone selling for over 90% off?
I have clients in commercial real estate. You should look into doing a story on non-judicial foreclosure. Some banks are forcing landlords into foreclosure to minimize loan losses.
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
It will trickle down into regular people’s life! I would cut regulations to allow conversion to residential properties!
those are not discount - it just means that the market was overpriced for so many years - many found out that it's possible to work from home
Reclassify it as residential real estate...
Yes!!!!! Screw corporations and the rich.
I feel like you guys have been saying this commercial real estate crash is going to be coming for 2 years now when is it actually going to happen?
On finance subs they say: The market can stay irrational longer than you can stay solvent.
Then ignore it… buy some more office space.
The balance sheet for Blackstone looks fine. Over 3 billion in cash, over $4 billion in receivables, about $12 billion in total debt. Stock up 34% year over year, 2.75% dividend yield.
I remember years ago people saying this day would never come. 70% off is impossible. Yet here we are today. I hear the same thing about detached houses today.
Turn them into residential!
Interesting. Our commercial buildings don't have enough space in our city. They are getting leased so fast. Yay growth cities!