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If the skyscrapers stay below required occupancy rates for too long the CRE securitisations they collateralize will default and they will become (mostly) bank p
by nologic01 3y ago
If the skyscrapers stay below required occupancy rates for too long the CRE securitisations they collateralize will default and they will become (mostly) bank property.
The new owners will try to offload them to the highest bidder. So I forecast an active second hand skyscraper auction market (with the usual lemon problems).
What will be the price? Well if people don't need and/or don't want to work in those places anymore, the price will be determined by the next best use.
For a low enough price I could imagine artist colonies turning them into cavernous post-modern studios where the sky-high rise and precipitous fall of a particular way of living and working will be documented with great artistic sensibility.
- biztos 3y agoAnd then at some point the artists will be pushed out in a gentrification wave after they made it cool to live in the skyscrapers. Those artists that had money to begin with, or made a lot really fast, will have bought a bunch of the property and stick around and make it seem like it’s still arty… but of course they’re actually real estate investors now as much as they are artists. Exactly like it happened with the old industrial lofts in so many cities. NY, SF, Berlin just off the top of my head. That said, it’s probably the best realistically possible outcome here.
- soupfordummies 3y agoI'm really thinking/hoping that offices become the new lofts.