4 ms·

All of this will have repercussions to the commercial real estate space. Who's going pay for the mortgage if there is hardly any tenant? Who's going to buy any

All of this will have repercussions to the commercial real estate space. Who's going pay for the mortgage if there is hardly any tenant? Who's going to buy any more commercial space from the banks that forecloses them?

mcculley 8y ago
Commercial real estate is already feeling the effects and trying to figure out how to react. My main street is turning what was formerly used as retail space into microbrew beer venues and experiences like escape rooms and craft shops where people do things together. I'm not convinced it is a bad thing that we no longer waste so much space on retail.
- j2bax 8y ago
  That’s really interesting. You described exactly the street where my office is.
- Waterluvian 8y ago
  You also described the main street where I am. I think it's a really good thing. Reclaim those spaces for things that cannot be done online.
ghaff 8y ago
Suburban/rural-ish malls are a particular problem because they're based around the idea of anchor tenants (like Sears) who draw people into malls with lots of smaller shops that people mostly go to because they're already in the mall for the anchor store. I have a friend who follows retail for a financial firm. She's of the opinion that the bloodletting in retail is just getting started.
dontbenebby 8y ago
>All of this will have repercussions to the commercial real estate space. Who's going pay for the mortgage if there is hardly any tenant? Converting them to residential could be one solution. With climate change intensifying weather events, an arcology where you can live, have a few shops, and a food court without ever going outside could be quite useful.
- ghaff 8y ago
  The malls going under aren't in the places where real estate is super-scarce. High-end urban malls are actually doing quite well. To a first approximation, no one in a suburb/exurb/small city wants to live (or can afford to) live in some corporate arcology.

mcculley 8y ago

Commercial real estate is already feeling the effects and trying to figure out how to react. My main street is turning what was formerly used as retail space into microbrew beer venues and experiences like escape rooms and craft shops where people do things together. I'm not convinced it is a bad thing that we no longer waste so much space on retail.

j2bax 8y ago
That’s really interesting. You described exactly the street where my office is.
Waterluvian 8y ago
You also described the main street where I am. I think it's a really good thing. Reclaim those spaces for things that cannot be done online.

ghaff 8y ago

Suburban/rural-ish malls are a particular problem because they're based around the idea of anchor tenants (like Sears) who draw people into malls with lots of smaller shops that people mostly go to because they're already in the mall for the anchor store. I have a friend who follows retail for a financial firm. She's of the opinion that the bloodletting in retail is just getting started.

dontbenebby 8y ago

>All of this will have repercussions to the commercial real estate space. Who's going pay for the mortgage if there is hardly any tenant? Converting them to residential could be one solution. With climate change intensifying weather events, an arcology where you can live, have a few shops, and a food court without ever going outside could be quite useful.

ghaff 8y ago
The malls going under aren't in the places where real estate is super-scarce. High-end urban malls are actually doing quite well. To a first approximation, no one in a suburb/exurb/small city wants to live (or can afford to) live in some corporate arcology.