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Not likely. You won't have a permanently abandoned building in a city like that. Someone buys it or it comes down.
by Overtonwindow 4y ago
Not likely. You won't have a permanently abandoned building in a city like that. Someone buys it or it comes down.
- maerF0x0 4y agoExactly. the owners go bankrupt. It's auctioned for a present price that looks like a bond of it's future cashflows. This is why rent doesn't always track purchase prices. People who bought a long time ago, or are picking up distressed assets have a lower capital base than those who bought recently or at peak prices. Because they have a lower capital base they only need to compete with, on a risk adjusted basis, with other recurring revenue investments (like bonds). Now, because bond rates have sky rocketed recently, that means the value of the buildings has plummeted (remember risk adjusting). If a building value has plummeted, and it's vacant, the owner has a good chance, potentially an incentive to just walk away from it.
- orangepurple 4y agoThere are abandoned buildings in Manhattan that have been sitting untouched since the early 80s
- justahuman74 4y agoIs it not worth it to demolish it and build apartments?
- orangepurple 4y agoMaybe it gives you a taste of the extreme level of bureaucracy in NY https://www.youtube.com/watch?v=Zjd1WNhGliY https://www.youtube.com/watch?v=Zjd1WNhGliY https://www.youtube.com/watch?v=965BLLWv8h8 https://www.youtube.com/watch?v=965BLLWv8h8