4 ms·
> Supply and demand will fix this. Real estate speculators will eventually realize they've already lost the money they put into the building, then sell it at a
by chimeracoder 3y ago
> Supply and demand will fix this. Real estate speculators will eventually realize they've already lost the money they put into the building, then sell it at a loss (or at bankruptcy). Then, the residential conversions will happen, producing a supply of large, irregularly shaped manhattan condos that will certainly sell.
>
> Capitalism does have its advantages.
The inherent land value is so astronomical and the cost of retrofitting is so high that, at virtually any price, most developers would decide it's more economical to raze the building and start over, designing a residential building from scratch with cookie-cutter units that can be sold for maximum profit.
- nocoiner 3y agoOne problem is that the owner of the land, the owner of the building, and the developer are generally separate and distinct. In my experience the vast majority of property owners - especially those with the wherewithal to own prime CBD real estate - tend to be quite happy to sit on unproductive land for a very long time. If any of these buildings get razed, my guess is that many landowners would rather turn it into a parking lot for half a decade than let a developer turn it into something cookie cutter.