5 ms·
Correct. NEMA was always kind of ill-conceived.
by johnloeber 3y ago
Correct. NEMA was always kind of ill-conceived.
- tempsy 3y agoCurrent 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 agoThis 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 agoReal estate values aren't included in inflation calculations.
- neural_thing 3y agoThis 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 agoNope. Owner's equivalent rent is not the same as real estate price.