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> The proper market reaction is to spend the money to convert these office spaces to some other use, perhaps residential. That would be very expensive. To be
by lamontcg 3y ago
> The proper market reaction is to spend the money to convert these office spaces to some other use, perhaps residential.
That would be very expensive. To be able to afford that, the prices need to crash seriously hard.
- htss2013 3y agoIt would be expensive but so would a banking and general financial crisis caused by empty office buildings and CMBS turning into toilet paper. The government will pay for it either way and the currency will be inflated either way. God forbid the money be used for housing instead of never ending wars.
- lamontcg 3y agoI mean I agree, but I can also predict the screaming at politicians if the government starts giving handouts to developers (particularly from the people with vested interest in keeping residential real estate inflated).
- htss2013 3y agoWho benefits from lack of inventory vs conversion condos? I can't think of anyone but residential REITs and home builders. The average SFH owner in some neighborhood doesn't see new condos downtown as a threat. But every other vested interest is aligned with the developer handouts. Eg, construction, government for more taxes, unions, office REITs that want less competition, big finance who want the CMBS problem to go away. Even the mortgage industry would profit more from selling tons of new condos vs fewer more expensive resales.