4 ms·

An intuition I am open to being incorrect: I found NEMA ostentatious and overpriced even at the peak of Uber/Twitter hype (the offices of which form a NEMA sand

An intuition I am open to being incorrect: I found NEMA ostentatious and overpriced even at the peak of Uber/Twitter hype (the offices of which form a NEMA sandwich). Second only to the condo building that tilted because its piles were driven too shallow, it does not surprise me that this building would "lose value" in a correction.

johnloeber 3y ago
Correct. NEMA was always kind of ill-conceived.
- tempsy 3y ago
  Current vacancy rate is still less than 10%, so unsure what makes it ill-conceived. There is/was a lack of amenity-rich rentals targeted to young professional types in SF like you’d see in NYC and it fills a certain niche. Main issue is rental market in SF is still soft so they can’t charge what they did pre-pandemic, and the location doesn’t help.
  - anm89 3y ago
    "so unsure what makes it ill-conceived" The headline of the article is that it has lost 50% of it's value. During that same multi year period we have had well over 10% inflation. So Maybe that part. Yeah I'm gonna go with that part. Or maybe the investors just hate money and were going for -60% ROI. Who knows.
    - tempsy 3y ago
      This is a really uncalled for response. The original comment pointed to the ostentatiousness of a luxury rental building, as if there is no place for it in SF. It lost value because of a global pandemic years after it launched that has caused rents to fall, but has still managed to keep vacancy rates below 10%. Obviously it could not have planned for something completely outside of its control.
    - nradov 3y ago
      Real estate values aren't included in inflation calculations.
      - neural_thing 3y ago
        This is wrong. Housing accounts for about a third of CPI. There's some funkiness about how the Owners Equivalent of Rent is calculated but real estate prices definitely show up in inflation. https://www.brookings.edu/articles/how-does-the-consumer-price-index-account-for-the-cost-of-housing/ https://www.brookings.edu/articles/how-does-the-consumer-pri...
        nradov 3y ago
        Nope. Owner's equivalent rent is not the same as real estate price.

johnloeber 3y ago

Correct. NEMA was always kind of ill-conceived.

tempsy 3y ago
Current vacancy rate is still less than 10%, so unsure what makes it ill-conceived. There is/was a lack of amenity-rich rentals targeted to young professional types in SF like you’d see in NYC and it fills a certain niche. Main issue is rental market in SF is still soft so they can’t charge what they did pre-pandemic, and the location doesn’t help.
- anm89 3y ago
  "so unsure what makes it ill-conceived" The headline of the article is that it has lost 50% of it's value. During that same multi year period we have had well over 10% inflation. So Maybe that part. Yeah I'm gonna go with that part. Or maybe the investors just hate money and were going for -60% ROI. Who knows.
  - tempsy 3y ago
    This is a really uncalled for response. The original comment pointed to the ostentatiousness of a luxury rental building, as if there is no place for it in SF. It lost value because of a global pandemic years after it launched that has caused rents to fall, but has still managed to keep vacancy rates below 10%. Obviously it could not have planned for something completely outside of its control.
  - nradov 3y ago
    Real estate values aren't included in inflation calculations.
    - neural_thing 3y ago
      This is wrong. Housing accounts for about a third of CPI. There's some funkiness about how the Owners Equivalent of Rent is calculated but real estate prices definitely show up in inflation. https://www.brookings.edu/articles/how-does-the-consumer-price-index-account-for-the-cost-of-housing/ https://www.brookings.edu/articles/how-does-the-consumer-pri...
      - nradov 3y ago
        Nope. Owner's equivalent rent is not the same as real estate price.