Slumping office property values are rippling through US banks, with smaller lenders in particular ramping up the use of loan modifications in their commercial real estate books.
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#RTO #BackToOffice
I hope it’s clear why corporations are screaming about mandatory in-presence work: because investors are heavily invested, and a blowout would vaporize billions from the wealthiest pockets
800k sf at $522M is expensive and does include renovation costs. All-in, you’re over $1,100/sf easy at that basis, if not more. That is very pricey and requires pretty expensive rent to support. That is also excluding all zoning change, entitlement, debt costs etc.
So it makes for an awful office to resi conversion opportunity. High purchase price + additional construction costs = very high luxury rents needed to cover. All for awkward unit layouts and inefficient floor plans.
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I hope it’s clear why corporations are screaming about mandatory in-presence work: because investors are heavily invested, and a blowout would vaporize billions from the wealthiest pockets
E.g, this 800K sqft building was just sold for U$ 522M.
Around this area it is common to find 700K 1-bdr apartments.
The main issue is that increasing the offer would reduce the price of the apartments in the area and we don't want this, right?
Can the residential market cover that?