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The office real estate crash will be so sharp and deep that Capital Economics thinks office values are unlikely to recover by 2040 (fortune.com)
submitted 3 years ago by to c/news@kbin.social
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The research firm’s top property economist likens the decline in office demand to what malls have experienced over the last six years—and sees a similar outcome.

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[–] 17 points 3 years ago (3 children)

Without paywall

Hopefully many offices will be converted into permanent living spaces instead of temporary ones.

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  • [–] 9 points 3 years ago* (last edited 3 years ago) (1 child)

    While coverting offices to living spaces would be good for cities, there's no lack of living spaces.

    There's just a glut of dragons hoarding them.

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  • [–] 6 points 3 years ago (1 child)

    No idea if this is a common turn of phrase or your invention, but I love the "dragon" reference. People get so upset when I tell them we should "eat the rich", but not even Gaston is against killing dragons that are hoarding the village's wealth and killing our children!

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  • [–] 5 points 3 years ago* (1 child)

    People get so upset when I tell them we should “eat the rich”

    And then they vote for genocidal fascists without feeling the slightest pang of conscience. Honest libertarian pacifists, they ain't.

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  • [–] 6 points 3 years ago

    It is possible to retrofit but as u/dismalnow points out zoning is a big issue but there is also issue of economics. These building need to be sold at a steep discount for redevelopment to be economically viable. This requires that current owners book their losses and sell but they won't until they can't refinance, first wave is due 2024-2025. Many bagholders will have to face the music, let's see what they will do. I am sure smart developers are already stacking cash for deep value shopping. With that being said many Class B/C office towers are utter trash to a point where it is more economical to just level them. I don't know why local governments allowed them to be built...

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