"CRE Expert Warns 30% of Office Buildings Worthless, Fueling Economic Fears"

TL;DR Summary
As remote work continues and office vacancy rates soar, commercial property owners are facing the harsh reality that about 30% of office buildings may be essentially worthless and need to be torn down. The potential solution of converting offices into apartments faces challenges such as high costs and zoning regulations, leading to predictions that a significant portion of commercial buildings may not survive the downturn in office demand. Experts suggest that government subsidies and clever public policy could help facilitate the conversion process and prevent a collapse of the commercial real estate market.
Topics:business#commercial-real-estate#office-buildings#property-conversion#real-estate#remote-work#urban-development
- CRE vet who advised on $8 billion of deals says 30% of office buildings are ‘basically worth nothing’ and ‘just have to be torn down’ Fortune
- The Economic Time Bomb in Empty Office Buildings Bloomberg
- Fears about office-space loans are ‘overblown,’ Citi says MarketWatch
- New FAU study finds sinking demand for office space could result in bank failures WPTV News Channel 5 West Palm
- Low demand for commercial office space fuels economic fears PBS NewsHour
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